Why are Asian Paints, Berger Paints shares falling? Experts list the reasons
Shares of Asian Paints and Berger Paints extended their slide for the second consecutive session on Thursday. Asian Paints stock price opened today with a lower spread and hit an intraday low of ₹2740.50 levels as Berger Paints stock price opened lower today and hit intraday low of ₹547 levels each. Over the past two sessions, shares of Berger Paints have fallen ₹610.50 to ₹547 levels, registering a decline of more than 10% as the Asian Paints share price fell by ₹3096 to ₹2740.50 levels, descending as high as 11.50% in the last two sessions.
According to stock market experts, rising crude oil prices are expected to affect the company’s profit margins and the higher interest rate regime will also reduce expenses in the infra sector where paints are a major raw material for the area. They said paint stocks should remain under selling pressure and advised positional investors to avoid taking new positions over the counter.
Speaking on the reason for the decline in the share price of paint majors, Ravi Singhal, Vice Chairman of GCL Securities, said: “Crude oil prices are rising and paint manufacturers are using crude oil as their main raw material. So, in the wake of higher crude oil prices, the margin of paint manufacturers is expected to decline and the reason for the decline in Asian Paints and Berger Paints shares should be seen from these specifications. Apart from this, the Low interest rate regime is about to end and Reserve Bank of India (RBI) has already indicated on increasing interest rates in the upcoming monetary policy meeting.So following d under a higher interest rate regime, infrastructure spending is expected to experience some decline. also paints the volume of business.”
Expecting the sale of Asian Paints and Berger Paints to continue, Sumeet Bagadia, executive director of Choice Broking, said: “Both paint stocks appear low on the chart chart and there may be further expected sales in these Paints stocks Asian Paints stock price may go up to ₹2550 per share while Berger Paints can go down to ₹480 per level of action.”
“At least 10% further correction in Asian Paints and Berger Paints shares are expected from current levels,” said Ravi Singhal of GCL Securities.
Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.