Shares of six paint makers fell 0.83% to 3.78% as crude oil prices surge amid Middle East tensions.
Meanwhile, the S&P BSE Sensex was down 682.49 points or 1.65% to 40,782.12.
Among the paint makers, Kansai Nerolac Paints (down 3.78%), Berger Paints India (down 3.22%), Akzo Nobel India (down 2.46%), Asian Paints (down 2.32%), Shalimar Paints (down 2.18%) and Asahi Songwon (down 0.83%) declined.
Higher crude oil increases input costs for paint companies, which use crude derivatives.
In the commodities market, Brent crude for March 2020 settlement was up $1.62 a barrel, or 2.36% at $70.22 per barrel. The contract has hit its day high at Rs 70.72, its highest intraday level since 28 May 2019.
The contract rose $2.35 or 3.5% to settle at $68.60 a barrel on Friday, 3 January 2020.
Brent crude futures spurted on Friday after a US air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies.
India is heavily dependent on oil imports for satisfying its domestic demand. A high crude price directly maps into a high trade deficit and in turn a high current account deficit (CAD). Higher crude prices also lead to a spike in domestic inflation.
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