Asian Paints, other paint stocks plunge up to 6% as Israel-Iran war fuels rally in crude oil prices: What lies ahead?

The shares of Asian Paints, Indigo Paints and other paint makers plunged up to 6% to multi-month lows on Monday as crude oil costs shot up amid robust escalations in the continued tensions in the Center East after US and Israel attacked Iran, killing the latter’s supreme chief Ayatollah Ali Khamenei and sparking robust retaliation from the nation.

Crude oil is a key uncooked materials supply for paint corporations as a result of lots of their inputs are petroleum-based derivatives. Therefore, the expectations of rising oil costs placing stress on their margins could have dampened investor sentiment for the shares of those corporations.

Asian Paints shares declined greater than 3% to commerce at Rs 2,298 apiece, the bottom degree seen by the inventory since June 27, 2025. The inventory was among the many prime losers on benchmark indices Sensex and Nifty.

Indigo Paints shares plunged almost 6% and Berger Paints shares tumbled greater than 5% to hit their respective 52-week lows on Monday morning.

Iran-Israel war fuels spike in oil costs

Brent Crude jumped greater than 6.5% to $77.63 per barrel, whereas WTI Crude surged over 65 to $71.23 per barrel, as seen at round 11 am. Greater than 20% of the world’s oil passes by means of the Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The heavy missile strikes across the space have raised worries about provide constraints, main to a spike in oil costs.

Not less than three ships had been attacked at present close to the Strait of Hormuz as Iran continues to launch retaliatory strikes throughout the Center East, in accordance to a report by BBC. The report talked about that worldwide delivery has virtually come to a standstill on the entrance to the realm.

Paint corporations seemingly to face margin stress from rising oil costs

This additional fuelled issues round provide disruption, boosting oil costs. “Upstream vitality and defence might even see relative assist, whereas oil-sensitive sectors such as OMCs, paints, tyres, aviation and chemical compounds face margin stress. Crude stays the important thing macro variable for Indian equities underneath the present escalation situation,” stated JM Monetary in its newest observe.

Notably, there isn’t a official affirmation but on whether or not the Hormuz Strait is closed, obstructing oil transport by means of the strait. UK’s second largest financial institution Barclays on Saturday elevated its forecast for Brent Crude oil futures to $100 per barrel. “Oil markets might need to ‌face their ⁠worst ⁠fears on Monday. As issues stand proper now, we expect Brent might hit $100 (per barrel), as the market grapples with the specter of a possible provide disruption amid a spiraling safety state of affairs in the Center East,” the financial institution stated in its report.

Iran is positioned alongside the Strait of Hormuz, by means of which roughly a fifth of the world’s oil provide passes, Ali Vaez, who heads the Iran Undertaking on the Worldwide Disaster Group, stated in a put up on X. “Even restricted disruption might spike vitality costs, gasoline inflation, and rattle international markets,” he added.

This comes amid broader market weak spot, with Indian benchmark indices opening sharply decrease and wiping off a big chunk of traders’ wealth. On the open, Sensex plunged 2,743 factors to begin the day at 78,543, whereas the Nifty 50 plunged 519 factors to open at 24,659. The sharp decline wiped off greater than Rs 7.8 lakh crore from the overall market capitalisation of all corporations listed on the BSE at open.

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