Oil prices plunge over OPEC decision; paints, aviation stocks surge
DSIJ Intelligence / 26 May 2017
Falling crude prices as an outcome of OPEC production cut policy, triggered the aviation and paint stocks on the bourses on May 26, 2017.
Falling crude prices as an outcome of OPEC production cut policy, triggered the aviation and paint stocks on the bourses on May 26, 2017.
Oil prices plunged about 5 per cent on Thursday as OPEC and other major oil exporters announced an extension of their plan to reduce oil in the markets by 1.8 million barrels per day till March 2018.
Jet Airways, SpiceJet and InterGlobe Aviation were up by 3 to 5 per cent in intraday trade on Friday, May 26, 2017, as the drop in crude prices will reflect on reduced fuel costs thereof raising the profit margins of the companies.
Whereas, Asian Paints, Shalimar Paints and Kansai Nerolac were the top gainers in the paint segment, gaining by 3 to 8 per cent in intraday trade on May 26, 2017, as a cut in crude prices will result in lower operating cost, with crude being one of the major raw materials for the segment.
On May 26, 2017, Jet Airways was trading at Rs 486.55, up by 3.92 per cent at 10:42 hrs IST on the BSE. While, SpiceJet was trading at Rs 108.15, by 4.24 per cent on the BSE.
Among paints, at 10:43 hrs, Shalimar Paints was trading at Rs 266.65, up by 6.96 per cent and Berger Paints India was trading at Rs 258.10, up by 6.26 per cent on the BSE at the same time.