Paint companies rise up to 4% as crude oil price slumps

Shares of paint stocks rallied over 4 per cent on BSE in the intra-day trade on the back of falling crude oil prices. Paint companies are expected to gain from decline in crude oil prices as it is one the key raw materials in paint manufacturing. 

The stocks of three paint companies — Asian Paints, Berger Paints and Kansai Nerolac (Nerolac) — surged 15-23 per cent over the last one-month against a 2.6 per cent rise in the S&P BSE Fast Moving Consumer Goods (FMCG) index. A fall in valuation after the recent correction in the FMCG space too supported