London blast aftermath: Sectors to watch out

OIL & GAS: The biggest loser on the stock exchanges. The BSE Oil & Gas Index lost 4.03 per cent or 137.17 points to end at 3,266.97. The weakness in oil stocks were in tandem with the fall in the overall market. With crude oil prices hovering around its all-time high above $60 per barrel, it is not surprising about the quantum of the fall. If oil prices rise, the global economy will be hurt. Inflation will spiral in several countries.

INSURANCE: Premiums will shoot up insurance as companies — which will have to take a big hit on their bottomline — will have to look at new ways to raise their sagging bottomlines. Billions of dollars were paid as settlement to the victims of 9/11 attacks. The loss of property and business are the other risks for which the insurance companies will have to pay higher settlements. Indian companies will have to pay more as most of the insurance companies reinsure abroad.

AVIATION: Global airlines had a tough time after 9/11 attacks in the US. Some airlines shut shop and others merged as losses mounted. There was a big decline in the number of travellers. The London attack has come at a time when the airline companies were on the road to recovery. Post 9/11, many travellers cancelled or postponed their plans which led to few airlines going for liquidation.

TRAVEL & TOURISM: The first casualty of any attack or war. Travellers are expected to cancel their plans and cancel their hotel and air reservations. Many countries, including the US, have issued high alert. ‘‘London is a preferred travel destination for many travellers — especially from India. There could be an impact,’’ says an industry spokesman. Many hotel companies in India reported huge losses and low occupancy rates after the 9/11 attacks. Will history repeat itself?

FINANCIAL MARKETS: Stock markets could take a beating. After 9/11, world markets declined to rock-bottom. Investors normally pull out funds from markets in uncertain times. Even currency value could depreciate.