Asian Paints declined 4.74%, Asahi Songwon Colors dropped 4.18%, Kansai Nerolac Paints fell 4.01%, Indigo Paints slipped 3.94%, Berger Paints India lost 3.66%, Sirca Paints India eased 3.64%, Shalimar Paints declined 2.80% and Akzo Nobel India fell 2.52%.
The selloff followed a sharp rally in global crude oil prices, with Brent crude surging toward the $120 per barrel mark, amid escalating geopolitical tensions in West Asia and supply disruptions across key energy routes. Rising oil prices have sparked concerns about a spike in input costs for paint manufacturers.
Crude derivatives form a significant portion of raw materials used in the paint industry. Products such as solvents, resins and other petrochemical-based inputs are derived from crude oil, making the sector highly sensitive to fluctuations in oil prices.
As a result, a sustained rise in crude prices can increase production costs for paint companies and potentially put pressure on operating margins, weighing on investor sentiment toward the sector.