Analysts caution against betting on crude-dependent chemical stocks

The Russia-Ukraine crisis has sprung up worries for the sector yet again as analysts say margins of chemical companies will be impacted due to the rise in prices of crude oil

Global and domestic equity markets alike have not been able to take a breather from a slew of headwinds that continue to rattle them three months into the calendar year 2022.

With Brent crude leaping to almost $140 per barrel on Sunday, the highest it has been since 2008 – up nearly 80 per cent thus far in calendar year 2022 (CY22), multiple sectors have started feeling the heat of the subsequent raw material inflation.

Among the impacted is the chemical sector, which had only recently begun gaining ground from Covid-19 induced increased logistics and freight charges and China-plant shutdowns.