Asian Paints near 52 week low on margin worries
Published On: Friday, March 4, 2022 | By: Team KnowMyStock
Shares of Asian Paints witnessed heavy selling pressure and were down 7 percent at Rs 2,662.35 on the BSE in Friday’s intra-day trade, falling as much as 16 percent in the past three trading sessions on margin concerns amid rising crude oil prices. Asian Paints is an oil user and uses crude oil derivatives as a raw material to manufacture paint. Inflation in commodity prices and, more specifically, in input materials in the company product segments across geographies, has risen significantly since the last quarter of FY2020-21 and continues to be on the uptrend. Crude oil prices have been climbing amid Russia's invasion of Ukraine. Fear of supply disruptions from key exporter Russia, in an already very tight market, has sent oil prices spiraling upwards. A report said that Saudi Arabia, the world’s largest oil exporter, could raise its official selling prices for Asia for April as buyers scramble to secure additional crude from the Middle East amid the Russia-Ukraine war.
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