Effect of Crude Price Oil Prices on different Sectors
Shares of oil marketing companies, local airlines, tyre firms and paint companies have some co relation to crude prices.
If crude prices rises then below stocks has tendency to fall downside.
If crude prices falls then below stocks has tendency to rise upside.
CRUDE Vs PAINT COMPANIES
For paint companies (like Asian paints, Berger paints) the fall in crude oil prices is beneficial While rise in crude oil prices is NOT beneficial as crude oil derivatives is used as inputs for paints.
CRUDE VS TYRE COMPANIES
There is a healthy correlation between crude price and rubber prices as they move parallel with each other. CEAT and MRF are major gainer from fall in crude prices while they are major losers from rise in crude prices.