Stocks to Watch Today (March 6, 2026): Mazagon Dock, MRPL, Radico Khaitan, DCM Shriram, DRL, Navratna PSU BEL  and more

Centre monitoring petroleum situation closely, retail prices won't be impacted: Sources

Karnataka-based lender's banking licence stands cancelled; here's how it happened

Su 30 MKI aircraft 'overdue', last contact at 7:42 pm: IAF

SBI Card declares 25% dividend: Record date to payment date, everything to know

Government to auction Rs 29,000 crore in G-secs on March 6 — what investors should know

Rupee rebounds from record low to 91.60—What analysts see next may surprise you

What if Israel-Iran conflict stretches to 100 days? From oil to dollar to consumer prices, possible impact explained

Uttarakhand 2024-25 GSDP stood at Rs 3,81,889 crore 

The End of the PIN: Why PhonePe’s biometric authentication for UPI payments is the future

A sudden surge in crude prices can upset the nation's key macro-stability parameters, as it can sharply spike the current account deficit (CAD), inflation and the fiscal numbers, whittling the benefits of higher growth, warns an RBI study.
Since the country is heavily dependent on oil imports
To the tune of over 80 per cent for meeting its domestic demand, it remains susceptible to global crude price shocks.
Besides CAD, rise in crude prices can also impact inflation and fiscal deficit, says the report.
The international crude prices increased by around 12 per cent between April and September 2018.
The mid-year spike in crude prices happened mainly due to spurt in demand, on the back of global growth revival, and partly due to geopolitical risks that led to supply-side shocks.
However since mid-November 2018, the crude prices have declined significantly but they remain volatile.
"An increase in crude price worsens the CAD and this adverse impact cannot be significantly contained through a higher growth. So, a crude price shock will be followed by high CAD to GDP ratio," says the latest issue of the Mint Street
Memos titled 'The Impact of Crude Price Shock on CAD, Inflation and Fiscal Deficit' pencilled by in-house economists at the central bank.
Watch Zee Business Tweet Video here:
<blockquote data-lang="en">9 जनवरी को <a href="https://twitter.com/hashtag/RBI?src=hash&amp;ref_src=twsrc%5Etfw">#RBI</a> गवर्नर शक्तिकांता दास की <a href="https://twitter.com/hashtag/NBFC?src=hash&amp;ref_src=twsrc%5Etfw">#NBFC</a> के साथ होने वाली बैठक से पहले क्या कहना है आदित्य बिड़ला कैपिटल के चीफ एक्जक्यूटिव अजय श्रीनिवासन का जाना हमारे संवाददाता राहुल कुमार ने। <a href="https://twitter.com/AnilSinghviZEE?ref_src=twsrc%5Etfw">@AnilSinghviZEE</a> <a href="https://twitter.com/rahul_jour?ref_src=twsrc%5Etfw">@rahul_jour</a> <a href="https://twitter.com/ShaliniKTiwari?ref_src=twsrc%5Etfw">@ShaliniKTiwari</a> <a href="https://twitter.com/RBI?ref_src=twsrc%5Etfw">@RBI</a> <a href="https://twitter.com/Srinivasan_Ajay?ref_src=twsrc%5Etfw">@Srinivasan_Ajay</a> <a href="https://t.co/j0E1S1VLRw">pic.twitter.com/j0E1S1VLRw</a>
— Zee Business (@ZeeBusiness) <a href="https://twitter.com/ZeeBusiness/status/1081534276015976448?ref_src=twsrc%5Etfw">January 5, 2019</a></blockquote>
<script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>The finding shows that in the worst case scenario, when crude prices hit USD 85/barrel, the deficit on account of oil balloons to USD 106.4 billion, which is 3.61 per cent of the GDP.
"Every USD 10/barrel increase in crude prices leads to an additional USD 12.5 billion deficit, which is roughly 43 bps of the country's GDP. So, every USD 10/barrel increase in crude price will shoot up the CAD/GDP ratio by 43 bps," it says.
The study says crude price shock will increase inflation, if the price increase is passed on directly to the final consumers.
"Under the most conservative estimate, we quantify that a USD 10/barrel increase in crude price at the price of USD 65/barrel will lead to a 49 basis points increase in headline inflation. A similar increase at USD 55/barrel gives around a 58 bps increase in headline inflation," it says.
Further, if the government decides on a zero pass-through to the final consumers, a USD 10/barrel spike in crude prices could increase the fiscal deficit by 43 bps.
This zero pass-through scenario allows us to put an upper band on the amount of fiscal slippage, it adds.
The actual inflation and fiscal deficit will finally depend on the level of government intervention (changes in tax and subsidy) in the domestic oil market, the study concludes.

A sudden surge in crude prices can upset the nation's key macro-stability parameters, as it can sharply spike the current account deficit (CAD), inflation and the fiscal numbers, whittling the benefits of higher growth, warns an RBI study.Since the country is heavily dependent on oil importsTo the tune of over 80 per cent for meeting its domestic demand, it remains susceptible to global crude price shocks.Besides CAD, rise in crude prices can also impact inflation and fiscal deficit, says the report.The international crude prices increased by around 12 per cent between April and September 2018.The mid-year spike in crude prices happened mainly due to spurt in demand, on the back of global growth revival, and partly due to geopolitical risks that led to supply-side shocks.However since mid-November 2018, the crude prices have declined significantly but they remain volatile."An increase in crude price worsens the CAD and this adverse impact cannot be significantly contained through a higher growth. So, a crude price shock will be followed by high CAD to GDP ratio," says the latest issue of the Mint StreetMemos titled 'The Impact of Crude Price Shock on CAD, Inflation and Fiscal Deficit' pencilled by in-house economists at the central bank.Watch Zee Business Tweet Video here:9 जनवरी को #RBI गवर्नर शक्तिकांता दास की #NBFC के साथ होने वाली बैठक से पहले क्या कहना है आदित्य बिड़ला कैपिटल के चीफ एक्जक्यूटिव अजय श्रीनिवासन का जाना हमारे संवाददाता राहुल कुमार ने। @AnilSinghviZEE @rahul_jour @ShaliniKTiwari @RBI @Srinivasan_Ajay pic.twitter.com/j0E1S1VLRw— Zee Business (@ZeeBusiness) January 5, 2019The finding shows that in the worst case scenario, when crude prices hit USD 85/barrel, the deficit on account of oil balloons to USD 106.4 billion, which is 3.61 per cent of the GDP."Every USD 10/barrel increase in crude prices leads to an additional USD 12.5 billion deficit, which is roughly 43 bps of the country's GDP. So, every USD 10/barrel increase in crude price will shoot up the CAD/GDP ratio by 43 bps," it says.The study says crude price shock will increase inflation, if the price increase is passed on directly to the final consumers."Under the most conservative estimate, we quantify that a USD 10/barrel increase in crude price at the price of USD 65/barrel will lead to a 49 basis points increase in headline inflation. A similar increase at USD 55/barrel gives around a 58 bps increase in headline inflation," it says.Further, if the government decides on a zero pass-through to the final consumers, a USD 10/barrel spike in crude prices could increase the fiscal deficit by 43 bps.This zero pass-through scenario allows us to put an upper band on the amount of fiscal slippage, it adds.The actual inflation and fiscal deficit will finally depend on the level of government intervention (changes in tax and subsidy) in the domestic oil market, the study concludes.

Besides CAD,  rise  in crude prices can also impact inflation and fiscal deficit, says the report.

Income Tax changes to subsidy: What will determine inflation when crude surge upsets economy? RBI says this

news-income-tax-changes-to-subsidy-what-will-determine-inflation-when-crude-surge-upsets-economy-rbi-says-this-78811

A sudden surge in crude prices can upset the nations key macro-stability parameters, as it can sharply spike the current account deficit (CAD), inflation and the fiscal numbers, whittling the benefits of higher growth, warns an RBI study. Since the country is heavily dependent on oil imports To the tune of over 80 per cent for meeting its domestic demand, it remains susceptible to global crude price shocks. Besides CAD, rise in crude prices can also impact inflation and fiscal deficit, says the report. The international crude prices increased by around 12 per cent between April and September 2018. The mid-year spike in crude prices happened mainly due to spurt in demand, on the back of global growth revival, and partly due to geopolitical risks that led to supply-side shocks. However since mid-November 2018, the crude prices have declined significantly but they remain volatile. An increase in crude price worsens the CAD and this adverse impact cannot be significantly contained through a higher growth. So, a crude price shock will be followed by high CAD to GDP ratio, says the latest issue of the Mint Street Memos titled The Impact of Crude Price Shock on CAD, Inflation and Fiscal Deficit pencilled by in-house economists at the central bank. Watch Zee Business Tweet Video here: 9 जनवरी को #RBI गवर्नर शक्तिकांता दास की #NBFC के साथ होने वाली बैठक से पहले क्या कहना है आदित्य बिड़ला कैपिटल के चीफ एक्जक्यूटिव अजय श्रीनिवासन का जाना हमारे संवाददाता राहुल कुमार ने। @AnilSinghviZEE @rahul_jour @ShaliniKTiwari @RBI @Srinivasan_Ajay pic.twitter.com/j0E1S1VLRw — Zee Business (@ZeeBusiness) January 5, 2019 The finding shows that in the worst case scenario, when crude prices hit USD 85/barrel, the deficit on account of oil balloons to USD 106.4 billion, which is 3.61 per cent of the GDP. Every USD 10/barrel increase in crude prices leads to an additional USD 12.5 billion deficit, which is roughly 43 bps of the countrys GDP. So, every USD 10/barrel increase in crude price will shoot up the CAD/GDP ratio by 43 bps, it says. The study says crude price shock will increase inflation, if the price increase is passed on directly to the final consumers. Under the most conservative estimate, we quantify that a USD 10/barrel increase in crude price at the price of USD 65/barrel will lead to a 49 basis points increase in headline inflation. A similar increase at USD 55/barrel gives around a 58 bps increase in headline inflation, it says. Further, if the government decides on a zero pass-through to the final consumers, a USD 10/barrel spike in crude prices could increase the fiscal deficit by 43 bps. This zero pass-through scenario allows us to put an upper band on the amount of fiscal slippage, it adds. The actual inflation and fiscal deficit will finally depend on the level of government intervention (changes in tax and subsidy) in the domestic oil market, the study concludes.

Besides CAD,  rise  in crude prices can also impact inflation and fiscal deficit, says the report.