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Crude oil shock: Asian Paints, Berger Paints' shares slide up to 18% in four sessions

Crude oil shock: Asian Paints, Berger Paints' shares slide up to 18% in four sessions

Brent crude price, which stood around $106 per barrel before the Russian invasion of Ukraine on February 24, has surged 23.48% to $130.89 per barrel.

Brent crude rates are still distant of all-time high of $147.50 hit in July 2008 Brent crude rates are still distant of all-time high of $147.50 hit in July 2008

Shares of paint companies such as Asian Paints, Berger Paints, among others, have lost up to 18 per cent in the last four sessions as Brent crude oil prices zoomed to fresh highs, threatening to eat into the profits of these firms.

Crude oil constitutes nearly half of the raw materials used in the manufacturing process of the paint companies, and hence a rally in oil prices will shrink their margins.

The ongoing Russia-Ukraine war has pushed Brent crude prices to a fresh high of $130.89 per barrel, a leap of over $10 per barrel against Friday's close of $118.03. Brent crude price, which stood at around $106 per barrel before the Russian invasion of Ukraine on February 24, has surged 23.48 per cent to $130.89 per barrel.

Crude oil on the boil: PGIM India MF explains how it may impact the market

However, Brent crude rates are still distant of all-time high of $147.50 hit in July 2008. Here's a look at how paints stocks have plummeted amid the soaring crude rates.

Asian Paints: The industry leader's stock has fallen 18 per cent in the last four sessions. The large cap stock, which stood at Rs 3,172.65 on February 28, fell to an intraday low of Rs 2,601 on BSE today. The share slipped 5.04 per cent intraday to Rs 2,601 against the previous close of Rs 2738.95 on BSE. The stock is down 20.84 per cent in 2022 but has gained 12.17 per cent in last one year.

Berger Paints: The share of another industry player declined 9.70 per cent to Rs 623.50 today against the close of Rs 690.55 on February 28 this year. The large cap share fell 4.63 per cent intra day today against the previous close of Rs 653.80 on the BSE.  The stock opened 2.88 per cent lower at Rs 635 today. The stock has fallen 18.62 per cent in 2022 and lost 14 per cent in last one year.

Indigo Paints: Stock of the new entrant in the industry has plunged 17 per cent in four sessions. The stock, which closed at Rs 1,803.55 on February 28, fell to a intraday low of Rs 1497.65 on BSE today. It opened 2.9 per cent lower at Rs 1,625 today against the previous close of Rs 1673.55. It touched an intraday low of Rs 1497.65, down 10.51 per cent on BSE today.

Kansai Nerolac Paints: The stock is down 7.11 per cent to Rs 422.05 today against the February 28 level of Rs 454.4 on BSE. The large cap stock dipped 5.5 per cent to an intraday low of Rs 422.05 today. It opened with a loss of 2.62 per cent at Rs 434.90 against previous close of Rs 446.60. The share has declined 25.28 per cent in last one year and lost 27 per cent since the beginning of this year.

Also read: Rs 6 lakh crore investor wealth wiped out as crude oil shock roils Sensex, Nifty

Published on: Mar 07, 2022, 3:01 PM IST
Posted by: Aseem Thapliyal, Mar 07, 2022, 2:55 PM IST