Paints stocks extends fall; Asian Paints, Shalimar Paints down over 6% in two trading days

Shares of paint companies were under pressure for the second straight trading sessions tracking the sharp rally in global crude oil prices.

Asian Paints, Berger Paints India, Shalimar Paints and Kansai Nerolac were down between 2% and 4% on the BSE, as compared to 1.2% decline in the S&P BSE Sensex at 03:20 pm.  In past two trading sessions, Asian Paints and Shalimar Paints were down more than 6% each on the BSE.

Oil prices extended gains early on Friday as producer cartel OPEC and Russia agreed to rein in a global oversupply in crude on Wednesday with analysts now focusing their attention on implementation of the deal. CLICK HERE TO READ FULL REPORT.

The paint companies' key raw materials are derived from crude oil this includes Titanium dioxide (TiO2), additives, pigments, resins, solvents etc.

The decline in the raw material prices in past helped these companies in increasing the profitability of operations despite the pressures on the realizations in the business. The decrease was on account of reduction in key raw material prices on the back of significant drop in crude prices.

COMPANY	LATEST	PREV CLOSE	LOSS(%)
ASIAN PAINTS	905.85	939.05	-3.54
BERGER PAINTS	225.70	233.55	-3.36
SHALIMAR PAINTS	150.25	153.80	-2.31
AKZO NOBEL	1403.95	1423.00	-1.34
KANSAI NEROLAC	333.80	337.00	-0.95