Shares of five paint companies came under selling pressure following a sharp 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 the April 2022 settlement added $6.4 or 6.1% to $111.37 a barrel. The contract jumped 7.15% to settle at $104.97 a barrel in the previous trading session. Crude oil prices rose amid fears of disruption to Russia’s supply chain due to the country’s ongoing war with Ukraine.
Higher crude oil increases input costs for paint companies, which use crude derivatives. Higher input prices reduce the profitability and margins of paint companies.
The barometer index, the S&P BSE Sensex, fell 1110.34 points or 1.97% to 55,136.94 amid an escalation in the Russian-Ukrainian conflict.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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