In the morning trade on November 17, shares of paint manufacturers witnessed a notable uptick, buoyed by a decline in crude prices to a four-month low. This drop in crude prices, reaching $76.60 per barrel, has instilled optimism among investors regarding potential reductions in input costs for paint manufacturing.
Crude derivatives serve as pivotal raw materials for the paint industry, constituting nearly 40 percent of the overall input expenses. A decrease in crude prices holds the promise of expanding profit margins for paint manufacturers. The recent dip in the benchmark Brent crude, registering a 6 percent fall over the past two sessions, is attributed to a higher-than-expected surge in US inventories. Factors such as a rebound in US treasury yields and concerns surrounding global oil demand have further contributed to this decline.
Among the key beneficiaries of this market movement are Akzo Nobel India, Berger Paints, Indigo Paints, and Shalimar Paints, all experiencing upticks of up to 3 percent in trade. Asian Paints, leading the pack, emerged as the top gainer in the Nifty, experiencing a 3 percent surge.
As of 12:17 pm, Asian Paints’ shares were trading 2.12% higher at ₹3,196.65, reflecting the positive momentum in the paint manufacturing sector fueled by the favorable crude price dynamics.