▼ Bearish for Indian equities
The oil shock hasn’t stopped the factory boom. It may be changing what factories make | Explained
The brief
- Oil and energy costs are feeding into transport, electricity and industrial inputs
- Factory selling prices are rising at one of their fastest rates
- Higher input costs could pressure margins in Indian manufacturing, cement and steel
- Deep-sea gas becomes costlier as government raises price ceiling
- The spice of the matter
- Steel sector eyes stronger quarters as demand and realisations improve
- CREDAI says unable to build affordable homes due to high input cost, taxes; seeks govt sops
- UK Firms Predict Faster Price Increases After Energy Costs Surge
Oil shock and its impact on Indian businesses
Higher oil prices are raising industrial raw-material costs for Indian businesses rather than immediately showing up at petrol pumps. Private refiners Reliance and Nayara are benefiting from diesel export margins, while state-run oil marketing companies face losses as controlled pump prices meet rising domestic demand.
Sunday, 4 October
- The oil shock hasn’t stopped the factory boom. It may be changing what factories make | Explained