Shares of Asian Paints and Berger Paints fell for the second consecutive session on Thursday. Asian Paints share price today opened with a margin of decline and reached intraday low At the level of 2740.50, while the share price of Berger Paints opened lower today and reached intraday low. 547 each level. Berger Paints shares have registered a fall in the last two sessions from 610.50 547 level, down over 10 per cent while Asian Paints share price falls from 3096 2740.50 level, a fall of 11.50 per cent in the last two sessions.
According to Share Market Experts, paint stocks are improving as Aditya Birla Group firm Grasim Industries has doubled the capital expenditure to enter the paint business. 10,000 crore and production is expected to start from the fourth quarter of 2023-24. The company board had given approval in August 2021. 5,000 crores for entry into paint manufacturing business. Market experts said selling pressure may persist in paint stocks and advised investors to avoid taking fresh positions in the market.
Speaking on the reason behind the fall in the share price of paint majors, Ravi Singhal, Vice Chairman, GCL Securities said, “Grasim Industries, a Aditya Birla Group company, has announced its entry into the paint business and has decided to enter the paint business. has also doubled its capex. The company has also announced that it is looking forward to start paint production from Q4FY24.” He added that paint stocks are already under pressure due to rise in crude oil prices after the Russo-Ukraine war.
Sumeet Bagadiya, Executive Director, Choice Broking, expects selloff in Asian Paints and Berger Paints saying, “Both paint stocks are looking weak on the chart pattern and some more selling may be expected in these paints stocks. Asian Paints share price may rise 2550 per share level while Berger Paints may go down 480 per share level.”
“The shares of Asian Paints and Berger Paints are expected to decline by at least 10 per cent more from current levels,” said Ravi Singhal of GCL Securities.
Grasim Industries is setting up five to six plants. Civil construction has already started at its two plants – Panipat and Ludhiana – and is expected to start soon in Chamarajanagar, Karnataka.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.