Shares of five paint makers rose by 1.77% to 7.78% at 10:53 IST on BSE following a recent slump in crude oil prices.
Berger Paints (India) (up 7.78%), Kansai Nerolac Paints (up 4.20%), Shalimar Paints (up 3.26%), Asian Paints (up 2.29%) and Akzo Nobel India (up 1.77%), edged higher.
The S&P BSE Sensex was up 258.62 points, or 0.96% at 27,167.44.
A foreign brokerage initiated coverage on Berger Paints India and Asian Paints with "outperform" rating. The brokerage said Indian paint industry will grow at a 16% CAGR (compound annual growth rate) between fiscal year ending March 2015 (FY 2015) and FY 2017 as against 10% growth between FY 2012 and FY 2014 to become a $8.3 billion industry. Crude oil fall and increase in organised segment would aid companies, the brokerage said.
Falling crude oil prices augur well for paints makers. Titanium dioxide, a key raw material for paint companies, is derived from crude oil.
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