The central government on Thursday announced reducing the prices of diesel and petrol for the first time after almost two and a half years. This time the prices of diesel and petrol have been reduced by Rs 2 each per litre. People have started getting its benefits from Friday i.e. today at 6 am. The effect of this announcement made late in the evening a day ago can also be seen in the stock market on the last day of the week.
Shares of these sectors can be reacted
After the change in fuel prices, shares of certain sectors are going to be in focus in today’s trading. For example, this decision may have an impact on the prices of shares of oil marketing companies, oil-gas exploration companies and sectors like tyres, logistics, paint etc. Just a few days before this, LPG cylinders were also made cheaper.
Impact on oil and gas stocks
If we look at the oil sector, the major stocks in the market are Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum. These three are government companies, which retail diesel, petrol and LPG etc. in the country. These companies decide the change in the prices of diesel, petrol etc. Lower retail prices may impact the earnings of these companies, due to which there may be pressure on the shares. Shares of oil and gas exploration companies like ONGC and Oil India may also face pressure.
aviation stock expectations
The price of crude oil in the international market has softened compared to the high level. Due to this, the prices of aviation fuel i.e. ATF have softened. There are possibilities of further reduction in ATF rates in the coming days. Aviation stocks may benefit from this. SpiceJet, Inter Globe Aviation are major stocks in the aviation sector.
There may be a change in their price also
The impact of diesel-petrol prices is wide-ranging. Diesel is the main fuel for heavy goods vehicles. Reduction in its price means reduction in the costs of cargo companies. Many sectors including FMCG are directly affected by this. Apart from logistics and FMCG, shares of paint and tire companies can also react to the news of change in the prices of petrol and diesel. Major stocks of these sectors include MRF, CEAT, JK Tyre, Asian Paints, Berger Paints, Castrol India, Dabur, Hindustan Unilever etc.
Disclaimer: The information provided here is being given for information only. It is important to mention here that investment in shares is subject to market risks. As an investor, always consult an expert before investing money. ABPLive.com never advises anyone to invest any money.
read this also: Got a gift before the elections, check the new prices of diesel and petrol in your city.