The consensus view of lower commodity prices being a boon for India is perhaps directionally appropriate, but overstates the advantages, said Credit Suisse in its report. 'The absolute impact on the economy is likely to be only neutral to slightly positive.'

"At the sectoral level, lower oil prices positively impact consumer staples, consumer discretionary (tyres, paints), cement and telecom companies," it added.

Home & personal care companies have 40-50% of input costs linked to crude oil, and paints 25%. Some of the benefit though would be offset by the higher A&P spend by FMCGs and a likely price cut in the case of paints. "We estimate a 10% drop in crude prices could result in a 1-7% increase in EPS. There are also second order benefits from reduced freight costs and power and fuel costs that will show up with a lag if they do," it added.

For tyre companies, rubber forms 40% of raw material and crude linked products form the rest. Credit Suisse estimates a 10% change in crude increases EPS by 20%.

While, telecom companies spend close to 4-5% of their mobile revenues on diesel in order to keep their base stations running in the face of acute power scarcity. Every 10% fall in diesel prices leads to a 1.2-1.4% increase in EBITDA for larger mobile operators. Urban focused smaller operators though are likely to see much smaller benefit.

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