The paint sector is experiencing downward pressure as crude oil prices rise amidst the Middle East conflict. Crude oil, a key input in the production of paints, impacts the cost structures of paint companies, leading to investor concerns over margins.
Here’s how major paint stocks are trading:
- Asian Paints: Down by 3.95%, trading at ₹3,147.90. The stock faces headwinds as rising crude prices are expected to affect input costs.
- Berger Paints: Declined by 3.63%, trading at ₹598.15. The stock remains under pressure due to similar concerns about increasing production costs.
- Kansai Nerolac: Down by 0.77%, trading at ₹309.00. While experiencing less of a decline compared to its peers, the stock is still feeling the effects of rising input prices.
- Akzo Nobel: Down 1.33%, trading at ₹3,884.90. The global paint giant is not immune to rising oil prices, which could affect its profitability.
- Indigo Paints: The only gainer, up 0.58%, trading at ₹1,515.85. Despite the broader sectoral pressure, Indigo Paints is showing resilience, potentially benefiting from operational efficiencies or market share gains.
- Sirca Paints: Down by 1.70%, trading at ₹337.90. The stock is reacting to concerns over higher costs amid the crude oil price rise.
- Shalimar Paints: Down marginally by 0.07%, trading at ₹138.35, indicating cautious trading.
- Retina Paints: The hardest hit, down by 7.69%, trading at ₹72.00, likely reflecting investor concerns over the company’s exposure to fluctuating crude prices.
The rising crude oil prices, exacerbated by geopolitical tensions, are likely to continue impacting paint manufacturers’ cost structures, with investors closely watching for further developments in the Middle East.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Please consult a financial advisor before making any investment decisions.
Data as of the time of publishing this article.
