Increased crude oil prices over $104 are causing strain for companies in the paint industry such as Asian Paints and Indigo Paints, as well as affecting the aviation sector and specialty chemical manufacturers in India.

The easing of competition in the paint sector has prompted Investec to upgrade Asian Paints, Berger Paints to 'Hold' and Kansai Nerolac, Indigo Paints to 'Buy'. This shift comes as Birla Opus repositions its focus, which may lead to improved pricing discipline and margin recovery.