Last weekend, when the situation in Israel emerged. First thoughts on the street was that a sharp rise in the crude oil price is inevitable. Initial reaction was pretty much on the same line, however that spike did not sustain beyond one day. Is that an indication that the crisis in the most oil sensitive part of the world was not able to push oil prices higher than what would make them rise. While the whole of the Indian economy would like oil prices to stay low, one sector which would like it more than any other sector is logistics. Especially in the midst of the festive season.
Decline in oil prices from their highs, increased economic activity are tailwinds which logistics companies have been getting for the last two quarters. The third one, the festive season, is getting added at this point of time. While it is tough to make a guess on the oil prices, given the fact that despite the two self imposed cuts in oil production by Saudi Arabia, crude oil prices have still not seen any sustained uptrend. So the probability of a major headwind does not seem to be close by. The list of the logistic companies is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.
Decline in oil prices from their highs, increased economic activity are tailwinds. However, will the step taken by RBI to control inflation show an impact on overall economic growth in the coming quarter and will a delayed monsoon may turn out to be a headwind for the short term. The list of the logistic companies is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.