In a strategic move, Russia declared a “Special Military Operation” against Ukraine, what followed is a 360-degree attack over land, water, air, and the internet. They are calling it the biggest European war since WW II, but is it a war on the Indian households? Let’s take a quick review of what this war means for us.
It’s time to cut back on those long drives and thank the Gods the season of pagodas isn’t here yet! The prices for crude oil consequently petrol, diesel, and LPG are on the rise. Due to this hike, sales of economical 2 wheelers are slowing, worsened by the semiconductor shortage which impacts the whole auto sector.
Planning a summer wedding? Don’t! Your jewelry may cost more than you planned! There’s nothing investors hate more than uncertainty, and in uncertain times, investors worldwide bestow their life savings to the shiny safer haven – Gold – making its price skyrocket!
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Think before buying that family pack of ice cream as inflation woes hit the country. Analysts foresee supply chain disruptions, and rising crude oil prices directly impacting the inflation indices. To add to this, the prices of our staple – wheat are at a 13-year high. The Monetary Policy Committee kept the repo rate unchanged at 4% giving inflation management a low priority than growth.
It is not all gloomy for us Indians though. As the West looks to impose sanctions on Russia, prices of Russian Urals crude were offered at a huge discount; bargain-loving IOC jumped at the opportunity to buy its first Russian crude in 2 years!
Oil exploration and production companies like OIL and ONGC tend to benefit as they are able to sell oil at a higher price. Indian aluminum companies may enjoy weak competition from Russia in the export market and low pressures on costs due to heavy reliance on coal power. Yes, tires & Paints that depend on crude in their raw materials and the microchip industry will face pressure in the market; And companies whose substantial revenues depend on the warring countries may witness choppy times in the market. India’s defense orders may get delayed because of sanctions imposed on Russia. But, this seems like a small price to pay than the ethical costs of the war!