US-Iran conflict: Oil rally has a crude impact on India Inc's key sectors

Among other sectors staring at a negative impact from higher crude oil prices are tyres and cement

The rising tension between the United States and Iran and its consequent impact on Brent crude oil, which surged further on Monday to around $70 per barrel, has only added to the woes of India Inc. Companies, which are already grappling with the sagging economic situation, now also face the potential threat of higher costs, and therefore, a fall in margins.

The Street’s concern was also palpable. Stocks pertaining to the sectors with relatively higher co-relation with crude oil prices, such as oil marketing (OMCs), aviation, paints and adhesives, cement, and tyres were down up to 7 per cent, as against