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Top 10 stocks that weathered the Ukraine storm

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Firms with higher export revenues also caught the fancy of investors as depreciation of rupee would boost support topline.

Shares of companies with minimum dependence on crude derivatives have managed to hold up in the midst of the turmoil market, as boiling oil prices battered the overall market sentiment. Firms with higher export revenues also caught the fancy of investors as depreciation of rupee would boost support topline.

For instance, Cipla, which generates nearly 60% of its revenue from other nations has topped among the Nifty100 members with a 15.4% surge. Cigarette maker ITC features third in the league table with 12.3% gains. In FY21, the cigarette business contributed 42.7% of its revenue and another 23.2% came from branded packaged food products, Bloomberg data shows.

Analysts expect less impact on consumer-facing stocks due to increase in oil prices and overall earrings for the Nifty50. “The impact of higher crude prices on earnings for consumer-facing stocks may not be too harsh and their lower contribution to aggregate earnings may get counterbalanced by higher earnings in global commodities and IT sectors, if crude oil prices were to remain around current levels for a limited period, ”wrote Kotak Institutional Equities in a report.

Supply shortfall due to sanction on Russia have benefited Indian metal stocks in a big way. While Tata Steel surged 11.1%, shares of Jindal Steel & Power and JSW Steel have climbed 15.4% and 6.6%, respectively. The current shortfall is over and above the earlier disruption in the sector due to reduction in shipment by large exporters like China and Japan. Both China and Japan have been trying to reduce their exports in a bid to bring down their carbon footprint. China exports about 60 million to 120 million tons a year, whereas Japan and Korea had exports of about 30 million tons a year.

While Europe contributed 50% to Tata Steel’s revenue in FY21, 26.1% of JSW Steel’s sales generated from outside India. Indian rupee, which plunged to its record low of 76.97 on March 7 against the greenback, has come off 2.2% since Russian invasion of Ukraine. On the other hand, the Nifty50 has pared most of its losses after plunging as much as 7%. The index is down by 0.52% between February 24 and now. The brent prices have surged about 3% during the same period.

Auto manufacturers dominate the list of laggards as surge in oil prices dented the demand for cars and two-wheelers in the country. Shares of Maruti Suzuki and Eicher Motors have lost 13-14% since February 24. That was followed by Hero MotoCorp and Tata Motors, each falling 11% during the same period.

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