Market Rally: Asian Paints, Indigo Paints Surge as Oil Prices Dip; Oil India Drops 6%Market Rally: Asian Paints, Indigo Paints Surge as Oil Prices Dip; Oil India Drops 6%

Crude oil prices have plummeted to three-year lows due to a pessimistic demand outlook, influencing market movements. Both Brent and WTI crude dropped nearly $3 on Tuesday, reaching their lowest since December 2021 and May 2023 respectively, following OPEC+’s reduced demand projections for this year and 2025.

Paint and tyre stocks experienced gains on Wednesday, September 11, benefiting from the significant decline in crude oil prices. The drop in key raw materials costs, mainly derivatives of crude oil, favourably impacts the profitability of companies in these sectors.

Asian Paints, Indigo Paints, and Kansai Nerolac in the paint sector saw shares increase, with Asian Paints up nearly 1% at ₹3,321.10, and Kansai Nerolac rising over 2% to ₹315.05. Indigo Paints also climbed more than 1% to ₹1,518.90.

In the tyre sector, JK Tyre advanced 0.7% to ₹428.90, MRF increased by 0.17% to ₹1,35,942.35, and CEAT shares went up by 1.28% to ₹2,880. These stocks benefited from the lower raw material costs due to falling oil prices.

Conversely, Oil Marketing Companies (OMCs) and upstream oil firms like ONGC and Oil India faced declines. ONGC shares dropped over 2% to ₹289.25, while Oil India plummeted more than 6% to ₹572.20, reflecting the broader impact of sliding oil prices on the sector.