Asian Paints shares jump 5.5% to top nifty chart — CEO exit at rival, crude price drop
Shares of Asian Paints Ltd surged 5.5% on Wednesday, making it the top gainer on the Nifty 50 index, as investors reacted to multiple positive triggers — a leadership shake-up at rival Birla Opus, easing crude oil prices, and an expected increase in the company’s weightage on the MSCI Standard Index.
The stock traded at ₹2,631 per share in morning hours, extending recent gains for India’s largest paint manufacturer, News.Az reports, citing foreign media.
Market sentiment was buoyed by news that Birla Opus CEO Rakshit Hargave resigned to join Britannia Industries as CEO, effective December 15.
Hargave’s departure, just 18 months after Birla Opus launched, has sparked speculation about a slowdown in the company’s performance.
Analysts at Nuvama noted that Birla Opus had shown no growth over the past 6–7 months, adding that the paints business remains a high-entry-barrier sector, favoring established players like Asian Paints.
A decline in global oil prices — down more than 1% on Tuesday amid fears of an oil glut — also boosted paint sector stocks.
Crude oil is a key raw material for paint production, and lower prices reduce input costs, supporting profit margins.
Reports suggested that MSCI will raise Asian Paints’ weightage in its MSCI Standard Index, prompting expected inflows of around $95 million, according to Nuvama Alternative & Quantitative Research.
Other gainers in the index review include Apollo Hospitals, Lupin, and SRF, while companies such as Dr. Reddy’s, REC, and Zydus Lifesciences saw reduced weightage.
Brokerages remain bullish on Asian Paints.
Nuvama reiterated its Buy rating, expecting a demand recovery as post-monsoon conditions and GST cuts boost discretionary spending.
Meanwhile, Nomura raised its price target for Asian Paints to ₹3,100 from ₹2,285 — a potential 25% upside from recent levels.
With easing input costs, positive technical triggers, and weakening competition, Asian Paints continues to strengthen its leadership position in India’s paint industry.
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