‘Lower oil prices to provide tailwinds’

New Delhi: The present run of lower oil prices will bring significant benefits for the Indian economy as reduced import bill and lower current account deficit and inflation could have a positive impact on GDP growth, Kotak Institutional Equities Securities said in its latest report on the oil sector.

Also, a large number of sectors and companies (with the exception of upstream oil companies) will also benefit significantly from higher demand and profitability, despite the current weak demand conditions, the firm has said.

Oil prices fell almost 30 per cent on Monday after the failure of OPEC and Russia to agree on extension of production cuts required to stabilise oil prices affected by the demand slump.

While, there is mayhem in the oil market after Saudi Arabia announced that it would increase oil production in an already over supplied market, the developments over the past few days have brought several positives for India.

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