As Warren Buffett said – ‘Fear is the foe of the faddist, but the friend of the fundamentalist’
The below article is the view of the author and not a recommendation for a buy and sell stocks. Consult your investment advisor before investing in any stock.
Professor Sanjay Bakshi the very well knows value investing professor. He follows deeply to Warren Buffet and Charlie Munger. His philosophy says at these times when an event is not going to last for lifetime its opportunity to pick up the best value stocks. So in the hindsight covid was one of the most scariest event happened which has sustained for a longer period but after that it was a nice big rally and good performing stocks done amazingly well.
Indian Listed Companies Impacted by Strait of Hormuz Closure
A prolonged closure or major disruption in the Strait of Hormuz would negatively affect a wide range of Indian listed companies, especially those dependent on oil and gas imports, as well as industries with high crude-linked input costs. The impact would be extended to companies which are indirectly impacted by crude companies business like logistics and other companies.
The 12% surge in crude oil prices on Friday, 14 Jun 2025 wasn’t just a market blip—it was the first domino to fall. When geopolitical conflict erupts in the oil-rich Middle East, India’s economy braces for ripple effects that cascade from fuel pumps to corporate balance sheets. Here’s how the Iran-Israel clash is already reshaping India’s financial landscape—immediately and long-term:
Economic impact
Immediate Victims: The Direct Crude Shock
Oil Marketing Companies (OMCs) – BPCL, HPCL, IOCL
Why Hammered?: They import crude at spiked prices but can’t instantly pass costs due to political pressure on fuel pricing.
Margin Crunch: If Brent stays above $90, OMCs face quarterly losses unless the govt hikes petrol/diesel prices (unlikely pre-elections).
Paint & Chemical Companies – Asian Paints, Berger, Pidilite
Crude = Raw Material: Titanium dioxide (TiO₂) and solvents are petroleum derivatives.
Double Whammy: Already battling high input costs; a 12% crude surge erodes margins further. Stock prices could correct in the short-term.
Aviation – IndiGo, SpiceJet
Jet Fuel = 40% of Costs: Brent spikes → ATF prices soar → ticket hikes won’t cover the bleed.
Key Companies Likely to Be Affected:
Secondary Impact: The Domino Effect
Fertilizers (RCF, Chambal): Natural gas (feedstock) prices could follow crude upwards.
Tyre Stocks (MRF, Apollo): Synthetic rubber = crude-linked. Expect downgrades.
Exhaustive list of companies sector wise gets impacted because the Strait of Hormuz controls 21% of overall world’s crude supply.
Downstream Oil Companies:
Indian Oil Corporation (IOC)
Bharat Petroleum Corporation Ltd. (BPCL)
Hindustan Petroleum Corporation Ltd. (HPCL)
Reliance Industries Ltd. (RIL)
LNG & Gas Utilities:
Petronet LNG
Indraprastha Gas Ltd.
Mahanagar Gas Ltd.
Paint Companies:
Asian Paints
Berger Paints
Kansai Nerolac
Indigo Paints
Tyre Companies:
Apollo Tyres
JK Tyre
CEAT
Lubricant Makers:
Gulf Oil
Castrol India
Aviation:
InterGlobe Aviation (IndiGo)
SpiceJet
Higher energy prices would fuel inflation, raise the current account deficit, and weaken the rupee, impacting the broader Indian economy and equity markets.
Overall take from Israel and Iran war started in June, 2025
In the short run, higher energy prices would fuel inflation, raise the current account deficit, and weaken the rupee, impacting the broader Indian economy and equity markets.
The crude-driven market panic will create two golden opportunities:
1. For Value Investors: “Buy the Blood” in Crude Victims
Stocks hammered now but with pricing power, low debt, and market dominance will rebound strongest:
OMCs (BPCL, HPCL): Govt may allow fuel price hikes post-elections or slash excise duties. Historically, OMCs bounce back 20-30% after crude stabilizes. Analyze critically among these companies also which is doing better.
