Shares of paint companies, Asian Paints and Berger Paints, hit their respective 52-week high in intra-day trade on the Bombay Stock Exchange (BSE) on Tuesday after the paint companies reported higher-than-expected earnings for June quarter coupled with fall in crude oil prices.
Global oil benchmark Brent futures tumbled over 2 per cent on Monday amid renewed global economic growth concerns after US President Donald Trump threatened to escalate the trade war with China with more tariffs, which restricted crude demand. Crude oil constitutes nearly half of the raw materials used in the manufacturing of the paint companies, and hence decline in oil prices may boost their margins.
Berger Paints share price rallied as much as 5.36 per cent to touch 52-week high of Rs 351.55 apiece on the BSE after making a positive start at Rs 336.50. By the time of reporting, Berger Paints share was trading at Rs 348.35, up 4.41 per cent. The stock breached its previous 52-week high of Rs 349 touched on August 29, 2018 in intra-day trade.
The stock saw a huge surge in volume trade as 2.67 lakh shares changed hands over the counter as compared to their two-week average trade volume of 0.88 lakh shares.
On the National Stock Exchange (NSE), Berger Paints share was at Rs 347.30 apiece, up 3.90 per cent as compared to previous closing price of Rs 334.25. The stock opened higher at Rs 336.45 and touched a 52-week high of Rs 351.65 during the day's trade.
Berger Paints on Monday reported a 32 per cent growth in consolidated net profit at Rs 177 crore for the quarter ended June 30, 2019, as against Rs 134 crore a year ago period. Revenue jumped 15.7 per cent year-on-year to Rs 1,716 crore.
In a similar trend, Asian Paints shares also hit a new high of Rs 1,565.80, up 2.70 per cent, on the BSE, breaching its previous high of Rs 1,550 touched on August 5. Following the Q1 report, Asian Paints stock has gained as much as 9 per cent in the last two weeks as against 3 per cent decline in the S&P BSE Sensex.
Edited by Chitranjan Kumar