The slump in crude oil has once again brought about some good news to the shores of the Indian paint-making industry. Within the span of under 10 days, the drop in the prices of the hydrocarbon has aided the performance of Indian paint companies at Dalal Street.
On Wednesday, September 11, major paint companies, saw their shares boom.
Recently, the price of benchmark Brent crude dipped below USD 70 a barrel.
Asian Paints
One of the biggest paint companies in the country, Asian Paints, made bumper gains of over 2 per cent, even before hitting the halfway mark of the day. Making steady gains in day so far, Asian Paints shares jumped 2.28 per cent or Rs 75.15. This took the overall value of shares to Rs 3,370.20 per piece.
Berger Paints
When we look at another big name in the industry, Berger Paints, the Kolkata-based company also made gains of over 2 per cent. At the time of writing, Berger Painst shares jumped by 2.29 per cent or Rs 13.75. This took the overall value of the shares to Rs 615.50.
Shalimar Paints
Shalimar Paints also made gains. The gains were under 1 per cent. The company shares rose to Rs 138.86 per share. This came to pass as the share price value increased by 1.89 per cent or Rs 2.57.
Nerolac Paints
Coming to the Indian wing of the Japanese paint manufacturer, Nerolac, the Kansai Nerolac Paints Ltd shares also made gains on Wednesday, September 11. The stock price rose by 1.41 per cent or Rs 4.35, taking the overall value of the share to Rs 312.40 per piece.
Indigo Paints
Although not as major as the previously mentioned companies, Indigo Paints also saw their shares rise in value. Indigo Paints saw a rise of 0.66 per cent or Rs 9.95. The overall prices jumped to Rs 1,513.00 per share.
What is the Connection Between Oil and Paint?
The recent slump in oil prices placate the paint market as the paints that are used in our house are made from petrochemicals extracted from crude oil. As crude oil prices fall, so do the costs of raw ingredients like solvents, resins, and additives.
