Paint stocks in demand as crude oil prices decline

Shares of five paint makers rose by 0.02% to 2.46% at 14:45 IST on BSE as crude oil prices fell.

Berger Paints (up 2.15%), Shalimar Paints (up 2.23%), Akzo Nobel India (up 0.55%) and Kansai Nerolac Paints (up 0.02%) edged higher.

Shares of sector bellwether Asian Paints rose 1.21% to Rs 712.30. The stock hit a record high of Rs 717.55 in intraday trade today, 27 November 2014.

Meanwhile, the S&P BSE Sensex was up 4.05 points or 0.01 % at 28,390.24

Brent crude oil futures hit four-year low amid speculation that OPEC will refrain from cutting output when ministers meet in Vienna today, 27 November 2014. Brent for January settlement was off $1.20 a barrel at $76.55 a barrel. The contract hit a low $76.28 a barrel in intraday trade, its lowest level since September 2010. Brent for January settlement had fallen 58 cents a barrel to finish at $77.75 a barrel during the previous trading session.

Falling crude oil prices augur well for paints makers. Titanium dioxide is a key raw material for paint companies and is derived from crude oil.

Powered by Capital Market - Live News