Paint & Tyre Stocks Rally as Crude Prices Cool Off After Israel-Iran Ceasefire

Market Performance: Paint & Tyre Stocks See Uplift

On Tuesday, June 24, shares of key paint and tire companies gained up to 2% in morning trade after crude oil prices sharply declined.

The dip in crude prices followed a ceasefire announcement between Israel and Iran, made public via U.S. President Donald Trump's Truth Social account, calming markets after nearly two weeks of tension.

Here's how the stocks performed at 9:20 AM on the NSE:

• Asian Paints: + 1.6% to ₹2,300
• Kansai Nerolac: + 1.8% to ₹243
• Berger Paints & Akzo Nobel: Also posted gains
• Tyre Stocks:
  • CEAT, Apollo Tyres, MRF, JK Tyres: All climbed up to 2%

Main News: Crude Oil Declines Post Ceasefire

The positive movement in paint and tire stocks correlates directly with a sharp fall in global crude oil prices:

• Brent Crude: - $5.53 or 7.2% to $71.48/barrel
• West Texas Intermediate (WTI): - $5.53 or 7.2% to $68.51/barrel

This drop follows growing optimism surrounding Middle East peace efforts, which have eased supply concerns that previously drove oil prices up.

Company Impact: How Crude Affects Paint & Tyre Industries?

Paint Manufacturers (Asian Paints, Kansai Nerolac, Berger Paints, Akzo Nobel)

Paint companies heavily depend on crude oil derivatives:

• Over 300 components are used in paint production, many of which are sourced from petroleum.
• Raw materials account for 55% to 60% of overall input costs.
• Lower crude prices = reduced cost burden, boosting margins.

Additionally:

• Crude influences the cost of titanium dioxide, a critical ingredient in white paints.
• Falling oil prices ease margin pressures and offer better pricing flexibility for manufacturers.

Tyre Manufacturers (CEAT, Apollo Tyres, MRF, JK Tyres)

Tyre production also relies on oil-based materials:

• Synthetic rubber and petrochemical inputs are heavily dependent on crude oil.
• The decline in oil prices = lower production costs.
• This creates an opportunity for improved operating margins for tire companies.

Summary: Sectoral Gains Driven by Crude Correction

The market response on June 24 highlighted how sensitive sectors, such as paints and tires, are to global crude price movements.

With raw materials in both industries closely tied to petroleum products, the recent 7.2% drop in crude oil prices delivered a welcome relief—reflected in the positive momentum of stocks such as Asian Paints, CEAT, and MRF.

The cooling of geopolitical tensions brought optimism about input costs, driving investor interest and sparking a rally across paint and retire counters.