Business
Stove Kraft, TTK Prestige shares plunge up to 5% despite LPG supply squeeze fears from Israel-Iran war. Here’s why
The drop in stock prices comes as investors rushed to book profits following a massive rally last week. Further, hopes of possible talks between US and Iran also eased LPG gas fears slightly. US President Donald Trump said Sunday that the United States was in discussions with Iran as the war enters its third week but that Tehran was not ready for a deal to end it.
“Yes, we’re talking to them,” Trump told reporters aboard Air Force One, without detailing the nature of such talks, when asked if there was any diplomacy under way to end a conflict that has spread across the Middle East and roiled global markets. Iran, on the other hand, has denied the claims.
LPG supply constraint is significant for India as as it is the world’s second-largest LPG importer. Several restaurants across the country have run out of gas supplies or switched to simpler menu items that require little to no cooking gas.
For induction cooktop players, this means more sales. Tata Group’s Croma said it has observed a threefold jump in demand for induction cooktops over the past few days, The Economic Times reported earlier. Further, Stove Kraft said its average weekly online sales have jumped four times.
“At Croma, we have observed a sharp and immediate uptick in demand for induction cooktops over the past few days. Our average daily run rate has surged significantly,” Infiniti Retail Ltd (Croma) CEO & MD Shibashish Roy said.
India is also grappling with a sharp LPG shortage as the ongoing war between Iran and the US-Israel alliance has led to the prolonged closure of the Strait of Hormuz, one of the world’s most critical energy supply chokepoints. Tanker movement through the route has been severely disrupted as Iran continues to target vessels attempting to pass through the corridor. The situation has forced several global suppliers to declare force majeure on gas shipments.Despite assurances from US President Donald Trump, the strait effectively remains closed to traffic. Iran’s Islamic Revolutionary Guard Corps has warned that oil shipments from the Gulf will be blocked unless US and Israeli attacks stop.
Also Read | Mutual fund portfolio down Rs 1.5 lakh in 12 days. Is the decline due to regular plans or market volatility?
Gas crisis in India
The supply disruption linked to the closure of the Strait of Hormuz has pushed up gas prices in India. Domestic cooking gas prices have increased by Rs 60 per cylinder, while commercial LPG prices have risen by Rs 114.5.
Shortages have been reported in multiple cities including Mumbai and Bengaluru. In some areas, restaurants have warned they may have to shut operations because of inadequate fuel supplies.
Meanwhile, the Indian Railway Catering and Tourism Corporation (IRCTC) has asked all its licensees to shift to alternate cooking methods such as microwave ovens and electric induction systems at railway food centres.
Sensex, Nifty today: Catch all the LIVE stock market action here
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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ORR: A Hedge Fund In ETF Clothing, Convincing Buy Opportunity (NASDAQ:ORR)
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