Shares of Indigo Paints, Asian Paints, Berger Paints, Akzo Nobel, and Kansai Nerolac rallied up to 5% in Friday’s trade after oil prices dropped around 5% on Thursday to their lowest in four months, as investors worried about global oil demand following weak data from the US and Asia.
Asian Paints surged 3% to emerge as the top gainer in the Nifty 50 index. At 11 am, the scrip was trading 2.62% higher at ₹3,212.40 apiece on the NSE. The stock has gained nearly 6% since the beginning of this year.
The average target price of Asian Paints is ₹3,204.50, which shows a downside of 0.20% from the current market prices, according to data from Trendlyne.
The report followed additional data indicating a decline in US retail sales for the first time in seven months during October, with decreases observed in motor vehicle purchases and spending on hobbies. This trend signals a slowdown in demand at the beginning of the fourth quarter, reinforcing the belief that the US Federal Reserve has concluded its interest rate hikes.
Meanwhile, an expected slowdown in Chinese oil refineries throughout also gave investors pause. Runs eased in October from the previous month’s highs as industrial fuel demand weakened and refining margins narrowed.
Still, Chinese economic activity rallied last month as industrial output increased at a faster pace and retail sales growth beat expectations.
Amid the escalating Israel-Hamas conflict in Gaza, US officials declared on Wednesday their intent to enforce oil sanctions against Iran, a longstanding supporter of Hamas.
With inputs from Reuters
Reference Link:- https://www.cnbctv18.com/market/paint-stocks-asian-paints-berger-paints-kansai-nerolac-indigo-paints-rise-crude-oil-prices-fall-18346421.htm/amp