U.S.-Iran deal reopens Strait of Hormuz easing Indian firms' costs
Thanks to the new U.S.-Iran peace deal, the Strait of Hormuz is open again, making life a bit easier for Indian firms.
Crisil's latest report highlights that falling crude-oil prices are helping ease pressure on profits.
Still, supplies of essentials like gas and urea will take some time to get back to normal because there are lingering disruptions.
Crisil sees mixed sector outlook
Crisil expects most industries to bounce back in the second half of the fiscal year as shipping picks up.
Out of 34 sectors studied, 24 will see only minor changes in revenue and margins, but 10 could face sharper drops, some losing up to one-third of their margins.
The good news: Brent crude is set to average $80 to $85 per barrel, which should gradually cut India's reliance on expensive spot gas.