Let’s discuss the stock market bearish movement in India due to Us and IRAN tension. The tension between the US And IRAN is going on. US airstrike kills IRAN major general Qasem Soleimani. And the United States has imposed two sanctions on Iran. What happened is directly impacting on the Indian stock market.
As we know that IRAN is an oil export country. So in this condition, the price of crude oil is touching the high and it’s price touches $70 per barrels. And it directly impacts on Indian Importing bills. This can change the Indian import bill because we had calculated bill according to $60 per barrel but now it is $70 per barrel. And if these prices same or higher in these two or three months then it will directly negatively impact Current Account Deficit (CAD). Look if the import is more than export then it Deficit. Current Account Deficit (CAD)means how much are you importing and exporting from your country.
All our international accounts and transactions in the dollars. Now the cost per barrel is increased therefore we have to pay extra dollars. Hence the demand for the dollar will high and then rupee will weak, that will impact the Indian economy.
Crude Oil derivatives are used as raw material to make paints products. so it will impact on paint industries. If the raw material cost will increase so it will automatically impact the profit margins of products. Therefore the companies like paint industries Berger Paints, Asian Paints And Nerolac Paints having a negative impact.
Stock Market Movement:
Yesterday on 06 January Sensex falls heavily. And the few stocks are on the one month before prices. So it will be a better opportunity to buy and add good fundamental stocks in your portfolio like HDFC BANK, BAJAJ FINANCE, ASIAN PAINTS, PIDILITE INDUSTRIES, etc. for the long term period.
So that was an overall overview of US And IRAN tension. If these two countries tension reduced, then the economy will have a good effect.
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