Asian Paints surges nearly 5%, extends rally to third consecutive day

Shares of Asian Paints, India’s top paint maker, soared 4.89% to Rs 2,527 in today’s session, hitting an intraday peak of Rs 2,532. The strong buying momentum has pushed the stock higher for the third straight day, reflecting sustained investor confidence.

Over the past week, Asian Paints' stock has gained over 8%, driven in part by the recent announcement on October 12, 2025, that its white cement manufacturing facility in Fujairah, UAE, has commenced commercial production. With an initial capacity of 2,65,000 tons per annum, this new facility represents a significant step in the company’s international expansion strategy.

Market participants are positioning themselves ahead of the company’s Q2 FY2026 earnings announcement, scheduled for November 12, 2025. The board meeting on the same day will also review the declaration of an interim dividend, further heightening investor interest.

In a recent report, ICICI Securities noted a sequential rise in commodity prices, with crude oil and HDPE prices increasing by 3.4% and 0.7% quarter-on-quarter respectively in Q2 FY26. The brokerage maintains a positive outlook on the paints sector and has reaffirmed an ‘ADD’ rating on all five paint companies under its coverage, including Asian Paints, with a target price of Rs 2,650.

The stock, with a current market capitalization of Rs 2.32 lakh crore, reached an intraday high of Rs 2,532. Asian Paints’ price-to-earnings (P/E) ratio stands at 64.26, while its price-to-book (P/B) ratio is 11.52.

Technical Outlook

The 14-day Relative Strength Index (RSI) for the day is currently at 51.6. Generally, an RSI below 30 suggests that a stock is oversold (potentially undervalued and due for a bounce), while an RSI above 70 indicates it is overbought (potentially overvalued and may face a pullback).

Asian Paints Ltd. is currently trading above all eight Simple Moving Averages (SMAs) analyzed, ranging from the short-term 5-day SMA up to the long-term 200-day SMA. This is a strong bullish signal, as the stock price staying above all these moving averages often indicates sustained upward momentum and a positive trend.

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