Crude oil fall good for Indian stock market: Brent crude oil prices have fallen below $72 per barrel. Meanwhile, prices on the Nymex have also dropped significantly, now standing below $67 per barrel. WTI has also slipped below $70. The market is focused on the upcoming meeting of the US Federal Reserve, which is set to begin on June 13. There is speculation that the Fed may increase rates by 0.25% in June, and some are also predicting another increase in July. However, some investors believe that rates will not be raised in June. The global economy is facing pressure due to problems in China, with other economies also struggling. Germany is grappling with a slowdown in production, and despite efforts by China, the economy is not showing significant improvement. In this scenario, the market believes that there may be a drop in demand despite production cuts. Goldman Sachs has downgraded its forecast for crude prices, predicting that they will remain at $86 per barrel until December 2023. Meanwhile, several countries, including Azerbaijan, have increased supply, leading to a glut in the market.
Companies that will benefit from this fall in crude oil prices include oil marketing companies, which will benefit from the reduction in under-recovery. Companies such as HPCL, BPCL, and IOC are expected to benefit from the fall in crude prices. Other oil and gas companies such as MRPL, Essar Oil, Chennai Petro, Reliance Industries, and Manali Petrochemicals will also benefit as crude oil is a raw material for them. This fall in crude oil prices will help these companies reduce their costs. Additionally, upstream companies like ONGC, GAIL, and Oil India will also benefit as their subsidy burden will be reduced.
In conclusion, the fall in crude oil prices is good news for the Indian stock market, and several companies are expected to benefit from this development. However, the global economy is still facing challenges, and the market may remain volatile in the near future.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
