The paint sector saw a significant surge as Asian Paints and Kansai Nerolac shares climbed sharply on Friday, benefiting from a decline in crude oil prices. Investors cheered as raw material costs for the sector eased, boosting sentiment across major paint companies.
Market Performance
- Asian Paints surged 5.57% to hit an intraday high of ₹2,544 on the NSE, marking its strongest gain in the past seven months.
- Kansai Nerolac advanced nearly 4%, reaching its highest level in six months.
- Berger Paints India added around 2%, reflecting a broad-based recovery in the paint segment.
The broader equity benchmark rebounded after a soft start, buoyed by firm buying in heavyweight stocks and sustained foreign fund inflows.
Main News: Crude Oil Decline Boosts Paint Stocks
The rally in paint shares was closely linked to a fall in global oil prices. Brent crude, the global benchmark, slipped 0.25% to USD 60.94 per barrel.
Crude derivatives form a major component of raw materials for the decorative paints industry. Input costs, which account for 55–60% of total expenses, directly affect profit margins. With oil prices easing, companies in the paint sector are seeing reduced production costs, fueling investor optimism.
Company Details
Asian Paints
Asian Paints led the gains on the Nifty 50 index, climbing 5.57% intraday to ₹2,544. The stock marked its highest monthly gain in seven months, driven by lower input costs and steady demand in the decorative paints segment.
Kansai Nerolac Paints
Kansai Nerolac shares advanced nearly 4%, hitting six-month highs. The decline in crude oil prices helped the company’s margin outlook, as raw material costs make up a significant portion of total expenses.
Berger Paints India
Berger Paints added 2%, reflecting sector-wide momentum and easing crude oil prices. The stock continues to benefit from improving cost conditions in a raw material-intensive industry.
Summary
The decline in crude oil prices provided a key boost to paint stocks, with Asian Paints and Kansai Nerolac leading the rally. Investors responded positively to lower input costs, which account for over half of total expenses in the decorative paints sector.
- Asian Paints: ₹2,544 (+5.57%)
- Kansai Nerolac: 6-month high (+4%)
- Berger Paints India: +2%
The sector-wide gains reflect the sensitivity of paint stocks to raw material costs, highlighting the impact of global oil trends on domestic equity markets.
Easy & quick
Leave A Comment?