New Delhi: Shares of major Indian paint companies came under pressure after global crude oil prices spiked amid escalating geopolitical tensions in West Asia, raising concerns over rising raw-material costs for the sector.
Stocks of leading paint makers such as Asian Paints, Berger Paints, Indigo Paints and Kansai Nerolac declined during the trading session, with some counters falling as much as 5%. The sell-off followed a sharp jump in Brent crude prices, which climbed above $80 per barrel—its highest level in over a year.
The paint industry is particularly sensitive to crude oil movements because petrochemical derivatives—including solvents, resins and binders—account for more than half of the sector’s raw-material costs. As crude prices rise, production expenses increase, squeezing operating margins for paint manufacturers.
Market participants said the surge in oil prices, triggered by rising tensions involving the United States, Israel and Iran, has rattled crude-dependent sectors such as paints, aviation and tyres. Analysts warn that sustained high oil prices could force paint companies to raise product prices, which may weigh on demand and profitability.
The development highlights the paint sector’s vulnerability to global commodity volatility, with investors closely tracking crude oil trends for clues on future earnings outlook.