 "The shares of aluminium manufacturers rallied on Monday on the back of a sharp rise in the price of the lightweight metal over the weekend, following China's announcement that it will withdraw export tax rebate for the commodity.")
A sharp decline in commodity and crude oil prices following the US’ announcement of reciprocal tariffs may weigh on Indian stocks and corporate earnings.
Historically, commodity and crude oil markets have exhibited a high positive correlation with equity valuations and company profits. Analysts caution that falling commodity prices often signal weaker economic growth and softer aggregate demand — both typically have a dampening effect on corporate performance.
While the correction in commodity and energy prices may improve margins and earnings for user industries — such as fast-moving consumer goods, paints, cement, pharmaceuticals, and automobiles — these benefits are likely to
