Brent crude surged to trade near a 1-year high and this has had a negative impact on consumer stocks.

For consumer stocks, oil impacts directly, the inputs of paint companies as well as adhesives. So Asian Paints, Berger Paints, Pidilite Industries all of them directly will be in focus.

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Apart from that it also impacts the raw materials for packaging and that accounts for a significant cost for a lot of the FMCG companies that have seen big inflation so that is negative. Thirdly, a lot of the transportation costs will increase also if we see a fuel price increase.

Finally, wheat was stable for a time being and but now the last two weeks we have seen a big jump to near multi-year highs for that so it is a negative for consumer stocks by and large on account of the inflation that we are seeing.

Watch the accompanying video of CNBC-TV18’s Mangalam Maloo for more details.

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First Published:Mar 7, 2022 12:00 PM IST