Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on April 17, 2024 on account of Ram Navami.

Syrian crisis: How does it impact India?
Wed, 11 Sep Pre-Open

Speculations override the facts and fundamentals when it comes to crude oil. The latest example of this is the ongoing events in Syria. The crude prices have soared in the recent past on account of chances of US launching a military attack on Syria. And irrespective of whether that comes true or not, the damage is already happening.

India being mostly dependent on crude oil imports is one of the worst hit victims in the entire case. It is not just 80% reliance on crude oil imports that threatens the energy security of the nation. But as rupee touches fresh lows against the dollar, the timing could not be worse. Since the crude oil imports are quoted in dollars, rising crude prices along with falling rupee are inflating the import bill. Further, as the fuel market is not completely deregulated in India, there is further blow on the fiscal health of the nation. Even the phased hike in diesel prices is unlikely to come to the rescue. This is because diesel remains a widely consumed fuel for some of the key sectors of Indian economy. A hike in diesel prices will only result in inflation which will be further detrimental to the Indian economy. And as an article in Firstpost suggests, the ripple effect is likely to involve gold - Indians' most preferred bet against inflation. It is unlikely that the recent measures taken by the Government to curb the gold imports will quench the appetite for gold. Instead, all this will foster gold smuggling. It doesn't take too much analysis to understand that all this is likely to pull rupee even lower. And we are likely to get stuck in a vicious cycle of low growth, inflation and twin deficits.

To conclude, the Syrian crisis has stakeholders with opposite interests -some who will benefit from the war and others who will lose. And India for sure belongs to the latter group. Things might not have been so bad had the Government put in efforts to make the country self reliant in its energy needs. But for now, we can only hope that the situation will not become worse and that a military action will be averted.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Syrian crisis: How does it impact India?". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.