Companies with higher export earnings also appealed to investors, as a depreciation of the rupee would increase aid revenue.

Shares of companies with minimal reliance on crude derivatives have managed to hold their own amid the market turmoil as boiling oil prices erode general market sentiment. Companies with higher export earnings also appealed to investors, as a depreciation of the rupee would increase aid revenue.

For example, Cipla, which generates almost 60% of its revenue from other countries, has one of the Nifty100 members with an increase of 15.4%. Cigarette maker ITC is third in the ranking with a profit of 12.3%. In FY21, the cigarette business contributed 42.7% of sales and an additional 23.2% came from branded packaged food products, Bloomberg data shows.

Analysts expect less of an impact on consumer-oriented stocks due to the rise in oil prices and the overall earrings for the Nifty50. “The impact of higher crude oil prices on the profits of consumer-oriented stocks may not be too harsh, and their lower contribution to overall earnings could be offset by higher gains in the global commodities and IT sectors, if the crude oil prices would remain around current levels for a limited period of time,” Kotak Institutional Equities wrote in a report.

The supply shortage caused by the sanctions against Russia has benefited India’s metal stocks to a great extent. While Tata Steel was up 11.1%, shares of Jindal Steel & Power and JSW Steel are up 15.4% and 6.6% respectively. The current shortage comes on top of the previous disruption in the industry due to reductions in shipments from major exporters such as China and Japan. Both China and Japan have tried to cut their exports to reduce their carbon footprint. China exports about 60 million to 120 million tons per year, while Japan and Korea export about 30 million tons per year.

While Europe contributed 50% of Tata Steel’s revenue in FY21, 26.1% of JSW Steel’s revenue was generated outside of India. The Indian rupee, which fell to its record low of 76.97 against the greenback on March 7, has fallen 2.2% since Russia’s invasion of Ukraine. On the other hand, the Nifty50 has made up for most of its losses after a whopping 7% plunge. The index has fallen 0.52% between February 24 and now. Brent prices have risen by about 3% over the same period.

Automakers dominate the list of laggards as the rise in oil prices dents demand for cars and two-wheelers in the country. Shares of Maruti Suzuki and Eicher Motors have lost 13-14% since Feb. 24. That was followed by Hero MotoCorp and Tata Motors, which fell 11% each over the same period.


This post Top 10 stocks that weathered the Ukraine storm was original published at “https://www.financialexpress.com/market/top-10-stocks-that-weathered-the-ukraine-storm/2464913/”

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