JBM Auto, Ola Electric Mobility, Ather Energy, among other electric vehicle stocks jumped up to 7% on Monday after Prime Minister Narendra Modi urged people to conserve fuel to save forex reserves and increase the use of public transportation amid the ongoing West Asia crisis.
share price jumped as much as 7.26%, shares surged 4.49%, Ather Energy stock price spiked 5.6%, while shares rallied 4.9%.
“It is time for us to use petrol, diesel and gas with great care,” said on Sunday while inaugurating projects in Hyderabad, Telangana. “We must make, efforts to use only as much as is needed to save foreign currency and reduce the adverse effects of the war,” he added.
Along with this, PM Modi made seven big appeals, such as , online meetings and limiting travel to cushion the consumer from soaring oil prices.
Modi also urged citizens to help conserve foreign exchange reserves by avoiding unnecessary overseas travel, vacations and weddings, opting for domestic tourism instead, and refraining from non-essential gold purchases for a year.
The sharp rise in crude oil prices amid the escalating US-Iran conflict in the Middle East has heightened concerns over inflationary pressures and a widening of India’s import bill, potentially leading to an increase in the country’s current account deficit (CAD).
A 10% increase in crude prices could push up inflation by 50 basis points and pare growth by 15 basis points, the Reserve Bank of India (RBI) earlier said in a Monetary Policy Report.
Crude oil prices are trading above $100 a barrel as the Strait of Hormuz, which carries about 20% of the world’s crude, remains largely closed amid the West Asia conflict. Brent crude futures jumped 4.22% to $105.56 a barrel, while US West Texas Intermediate was at $100.00 a barrel, up 4.80%.
(More to come)