India’s equity markets fell ( though marginally) for a sixth straight day on Wednesday after several countries, including the US and the UK announced sanctions against Russia for Moscow’s beginning of an invasion of Ukraine. The European Union also agreed on new sanctions against Russia while German Chancellor Olaf Scholz halted the new Nord Stream 2 gas pipeline from Russia.
We decode what the Ukraine-Russia conflict means for India.
1. Biggest casualty is fuel prices
Fuel prices in India are poised to go up by Rs 7-8 per litre as Brent, the global benchmark crude, surged close to $100 a barrel on Tuesday after Russian President Vladimir Putin sent troops into Ukraine fuelling fears of supplies being disrupted. Any disruptions to oil flows from Russia, with low spare production capacity in other countries, could easily send prices rallying. JPMorgan’s analysts have even tested the possibility of a spike to $150. Additional sanctions on top of those already affecting Russia’s oil industry could take oil higher much more quickly.
