Paint stocks in focus: Asian Paints, Berger Paints India, others fall up to 3% as crude oil prices near $113

Shares of Asian Paints, Kansai Nerolac, Akzo Nobel, Indigo Paints, Berger Paints, and Shalimar Paints were trading lower, continuing their downward trend this week on March 19 as the price of crude oil approaches $113.

The rise in crude oil prices presents a significant challenge for paint manufacturers since oil and its derivatives are essential components in the paint production process. Crude oil prices have seen a sharp increase on Tuesday and Wednesday following attacks on energy infrastructure in the Gulf region by both Israel and Iran, further intensifying a conflict that is set to enter its fourth week soon.

US crude, or West Texas Intermediate, increased by as much as 3.5% during early trading in Asia on Thursday, March 19, approaching $99 a barrel. Following a brief decline on Wednesday, Brent prices shifted direction and ended near the $113 per barrel mark.

This variant has risen another 5% this morning, reaching a high of $112 a barrel, close to the initial war peak of $120. Additionally, US natural gas experienced an overnight surge of nearly 5%.

Sector heavyweight Asian Paints declined 3% today and is down 8.30% over the past month, while Berger Paints and Kansai Nerolac fell around 2% each, extending their one-month losses to 9.14% and a steep 14.06%, respectively.

Akzo Nobel India slipped 1.5% (down 5.39% in a month), whereas Indigo Paints emerged as the worst performer, tumbling 2.3% today and 21.72% over the past month. Sirca Paints India also dropped 3.3%, taking its monthly decline to 7.51%, highlighting persistent weakness across the sector.

Experts have pointed out that the ongoing increase in energy prices has rekindled concerns about macroeconomic pressure, introducing an additional element of caution to market strategies.

"Brent crude has shot up to $111. This is bad news for oil and gas importers like India. If Brent remains above $110 for an extended period of time, that will have negative implications for India’s macros. India’s GDP growth and corporate earnings in FY27, too, will be impacted. But this scenario need not play out in the fast changing scenario.

A prolonged war is no one’s interest. Therefore, a sudden end to the war bringing crude prices sharply down cannot be ruled out. The market has been exceedingly volatile in response to developments on the war front and crude prices. Last three days of recovery in the market is likely to be wiped out if the war escalation continues," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

Technical Views

According to Anshul Jain, Head of Research at Lakshmishree, within the paints pack, relative strength clearly favours Asian Paints, while Kansai Nerolac and Akzo Nobel continue to exhibit weak structure and lack of demand follow-through. Asian Paints is approaching a critical long-term support band of 2100–2170, a zone aligned with prior accumulation and demand absorption.

“Price action here suggests potential base formation rather than trend continuation on the downside. However, the absence of momentum and muted participation indicates a time correction is still underway. This makes the setup more suitable for staggered long-term accumulation rather than short-term trades. A decisive breakdown below 2100 would invalidate the support thesis and reopen downside risk,” added Jain.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.