Paint stocks surge up to 2.5% as crude oil prices crash nearly 4%; Berger Paints among top gainers
Stock Market Today: Indian paint stocks, including Asian Paints, Berger Paints, and Kansai Nerolac, traded higher in Monday’s session (May 5), reflecting the broader positive momentum in the Indian stock market after crude oil prices dropped sharply amid rising global supplies.
Falling crude oil prices are a boon for India, which imports around 85% of its crude requirements. Sectors that rely on crude-based raw materials—such as the paint industry—stand to benefit significantly. Lower crude prices reduce input costs, improve gross margins, and can enhance profitability for paint manufacturers. This may also lead to more competitive pricing for consumers.
Amid this positive sentiment, Berger Paints (India) rose 2.40% to ₹556.60 per share, while Asian Paints climbed 2.16% to ₹2,461. Akzo Nobel India advanced 2.27% to ₹3,528, and Shalimar Paints and Kamdhenu Ventures India gained 1.15% and 0.64%, respectively. Similarly, Kansai Nerolac Paints was up 0.61% to ₹256.30.
Crude Oil Plunges: Brent slips below $60; WTI drops to $55
Crude oil prices fell nearly 4% on Monday after OPEC+ confirmed a production hike of 411,000 barrels per day starting in June. The move—reportedly aimed at punishing members that exceeded their quotas—could add as much as 2.2 million barrels per day by November, stoking fears of a potential supply glut.
This production increase comes at a time when global economic growth is projected to slow, partly due to lingering trade tensions. Reacting to the rising supplies, Brent crude futures fell 3.60%, slipping below $60 per barrel for the first time since February 2021, to the day’s low of $58.83, while WTI crude futures declined 3.90% to $55.83 per barrel.
OPEC+—which includes the Organization of the Petroleum Exporting Countries and allies like Russia—agreed to raise output for the second straight month, the group said on Saturday.
OPEC+ sources have said Saudi Arabia is pushing the group to accelerate the unwinding of earlier output cuts to punish fellow members Iraq and Kazakhstan for poor compliance with their production quotas.
These supply-side concerns overshadowed earlier positive signals, such as reports of potential U.S.-China trade talks that might ease global tensions.
Meanwhile, geopolitical risks in the Middle East remain elevated. Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against the Houthis and their backer Iran after a missile landed near Israel’s main airport. In response, Iranian Defense Minister Aziz Nasirzadeh warned that Tehran would retaliate if attacked by the U.S. or Israel.
Following the OPEC+ decision, Barclays cut its Brent crude price forecast by $4 per barrel to $66 for 2025 and by $2 to $60 for 2026.
Earlier, the International Energy Agency (IEA) slashed its 2025 global oil demand growth estimate by 300,000 barrels per day, projecting a total increase of 730,000 bpd, citing weak global economic prospects.
(With inputs from agencies)
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