Shares of five paint companies saw selling pressure following a steep rise in crude oil prices
Asian Paints (down 5.2%), Berger Paints India (down 3.19%), Kansai Nerolac Paints (down 2.81%), Indigo Paints (down 1.89%) and Akzo Nobel India (down 1.23%) all declined.In the commodities market, Brent crude for April 2022 settlement added $6.4 or 6.1% to $111.37 a barrel. The contract surged 7.15% to settle at $104.97 a barrel in previous trading session. Crude oil prices have been on a rise amid fear of supply chain disruption from Russia due to the country's ongoing war against Ukraine.
Higher crude oil increases input costs for paint companies, which use crude derivatives. Higher input prices decrease profitability and margins for paint companies.
The barometer index, the S&P BSE Sensex, was down 1110.34 points or 1.97% at 55,136.94 amid escalating Russia-Ukraine conflict.
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