Paints Stocks Spread Colours of Growth The November expiry saw a strong movement by most of the leading paints companies of the country. On a volatile expiry session on Thursday, the leading paint stocks have shown signs of outperformance the markets. On 25th November, Friday, we saw the same trend continuing in the market. Asian Paints share price and Berger paints are up by 1.52 per cent and 4.17 per cent respectively. Asian Paints share price is now trading at Rs 950.35 per cent, up by 14.25 points. However, it has recently taken a minor setback since the announcement of demonetization in India. The stock is down by almost 10 per cent since banning the Rs 500 & Rs 1000 notes was announced. Berger Paints share price on the other hand is down by almost 15 per cent considering the price correction since the 8th of this month. On Thursday, the stock was trading up by Rs 10.37 per share or 5 per cent and is trading at Rs 210 per share. Today it is trading at Rs 221.40 at the moment, up by 4.29 points. Technically both the shares are trading below their 30 days' moving average showing weakness in the scrips. However, owing to the recent correction, investors may find some value in the stocks. Both these stocks are a part of the top 500 stocks list and are supported with good fundamentals as they have been handpicked by the research team of Dynamic Levels. They can give good return in due time. Kansai Nerolac share price is also up by 1.28 per cent at the moment and is trading at Rs 344.40 apiece on NSE. This has been a good session so far for the Paint companies even as several front line stocks from across various other sectors are down in red on selling pressure. All the listed paint companies reported healthy second quarter results. A likely drop in activity in the realty sector following the reported hardships faced by realty sector on the
back of the government's demonetization move might result in lower earnings for the paint companies in the current quarter, but the long term prospects of the industry for most of the players look fairly bright. Today the front runner among all the major paint stocks is Shalimar Paints. Shalimar Paints share price zoomed by more than 12 per cent with the first two hours of the day’s trade. The share price is currently trading at Rs 152.75, up 12.56 per cent. A total of 2,61,616 shares of the company have been traded on the counter of NSE. It will be interesting to see how long the colourful rally of the sector continues.
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Article Written by Nabarupa Kanjilal