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

Shares of prominent Indian paint manufacturers, including Asian Paints and Indigo Paints, experienced significant declines of up to 6% on Monday, reaching multi-month lows. This downturn is attributed to a sharp increase in crude oil prices, which surged over 6.5% due to escalating tensions in the Middle East following a US and Israeli attack that resulted in the death of Iranian Supreme Leader Ayatollah Ali Khamenei. As crude oil is a crucial input for paint production, rising prices are expected to squeeze profit margins for these companies. Asian Paints saw its stock price drop by more than 3%, trading at Rs 2,298, marking its lowest price since June 2025. Similarly, Indigo Paints and Berger Paints reported declines of nearly 6% and over 5%, respectively. The geopolitical instability around the Strait of Hormuz, a vital oil transit route, has further raised concerns about potential supply disruptions. Analysts highlight that sectors reliant on oil, such as paints and chemicals, are likely to face mounting pressure as oil prices soar, with Barclays projecting Brent crude could reach $100 per barrel amid ongoing tensions. Investors are closely monitoring the situation as it unfolds, given its implications for both local equities and global markets.