Shares of four paint makers rose by 0.44% to 1.75% at 13:35 IST on BSE as crude oil prices fell yesterday, 31 December 2014.
Meanwhile, the S&P BSE Sensex was down 59.30 points or 0.22% at 27,439.15.
Among paint makers, Shalimar Paints (up 1.65%), Akzo Nobel India (up 0.44%) and Kansai Nerolac Paints (up 1.75%), edged higher.
Berger Paints India rose 1.39% after the company said it has fixed 9 January 2015 as the record date for 2 for 1 stock split.
But, Asian Paints declined 0.37%.
Crude oil prices witnessed sharp losses in recent months. However, rupee has weakened against the dollar in the recent days. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.
Brent crude futures declined yesterday, 31 December 2014 as plentiful supplies and tepid demand continued to send prices plunging. The contract had declined 57 cents or 0.99% to settle at $57.33 a barrel yesterday, 31 December 2014.
Falling crude oil prices augur well for paints makers. Titanium dioxide is a key raw material for paint companies and is derived from crude oil.
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