Asian Paints, Kansai Nerolac, other paint stocks rise up to 5% on decline in crude oil

Shares of paint companies traded higher on Friday, tracking a decline in crude oil prices, a key raw material for the sector.

Asian Paints rose 5.57 percent to an intraday high of Rs 2,544 on the NSE, emerging as the top gainer on the Nifty 50 index. The stock advanced amid easing oil prices, which directly impact input costs for paint manufacturers. The stock gained the most in 7-months.

The global oil benchmark Brent crude slipped 0.25 percent to USD 60.94 a barrel. Crude oil derivatives form a major component of raw materials for the decorative paints industry, which is raw material-intensive. Input costs typically account for 55–60 percent of total expenses, influencing profit margins.

Among other shares, Berger Paints India gained around 2 per cent, while Kansai Nerolac Paints advanced nearly 4 per cent. Kansai Nerolac share gained to its highest level in about six months.