In the first phase, Asian Paints will raise prices of emulsions, enamels, primers, distempers, the Neo Bharat range and other products by 6–8% from April 10, brokerage houses explained. The price hike on thinners will also be effective from this date but will be significantly higher, they added.
In the second phase, price hikes will be implemented across the rest of Asian Paints’ portfolio from April 21 onwards. This includes categories such as smartcare waterproofing, tile adhesives and wood finishes.
Oil rally cools
In a post on Truth Social, Trump said that the U.S. and Iran have had “very good and productive conversations” over the last two days regarding a “complete and total resolution” of the rising hostilities in the Middle East. He added that the talks will continue throughout the week and that a halt in military strikes will depend on the outcome of the ongoing discussions.
Following his announcement, oil futures plunged as much as 15% late on Monday, briefly falling below the $100 per barrel mark and hitting an intraday low of $96. However, Iran denied holding talks with the U.S., and a Wall Street Journal report said that Saudi Arabia and the UAE may be moving closer to joining the conflict against Tehran. Additionally, some Iranian gas facilities were reportedly hit despite the announcement, keeping investors cautious.
As a result, oil prices climbed back above $100 per barrel on Tuesday morning. However, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets are factoring in a potential end to the war, as reflected in August U.S. oil futures trading near $80. This may have boosted investor sentiment for crude-sensitive companies such as paint makers.
Asian Paints share price
Asian Paints shares surged to Rs 2,215 apiece in morning trade. This comes after the stock declined more than 10% over the past month, tracking the sharp rally in oil prices that began earlier this month after U.S. and Israeli military strikes escalated tensions with Iran.
Macquarie Group maintained a target price of Rs 3,100 for Asian Paints, implying an upside potential of more than 46% from the stock’s previous closing price on the NSE.
Meanwhile, Morgan Stanley retained its ‘Underweight’ rating, with a target price of Rs 2,126, implying a marginal upside of about 0.22% from the previous close.
Shares of Berger Paints and Indigo Paints also rose sharply, gaining 4–5% on Tuesday. Tyre stocks such as MRF and Apollo Tyres, meanwhile, advanced up to 3%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)