Is it true that the price of a commodity influence the stock price on intraday?? Lets say suppose Brent crude rises overnight to $52.59 will on the NXT day affect the UPSTREAM companies like ONGC ,RELIANCE Etc as well downstream companies like HPCL,BPCL ,IOC etc ???
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Yes, crude prices have an impact from OMC’s, aviation stocks, rubber to chemicals.
But it also affects UPSTREAM companies like ONGC,petronet LNG,reliance cause rising crude prices increase their profit margin . BUT does rise in crude prices affects the importing countries or the exporting countries as well ??
Global prices of metals do affect the prices of stocks like Hindalco, Vedanta and Hindustan zinc. So it can be believed that there are selective sectors that get affected by prices of commodities.
Yes somewhat true but I think metals is all dependent on China if something very bad happens to Chinese economy .METAL PRICES STARTS TO CRASH LIKE THE ONE HAPPENED IN LAST 2 YRS AGO . BUT IS THERE AN RELATION WITH CRUDE PRICES AND STOCK MARKET. COZ NORMALLY IT HAS INVERSE RELATIONSHIP BUT WHEN CRUDE REACHED AT VERY LOW LEVEL AT $26 A BARREL . THEN ALL THE WORLD MARKETS CRASHED WHY IS THAT ??