Metal stocks including NALCO, Hindalco Industries, Vedanta, and others rallied on Monday, March 30, following a sharp rise in aluminium prices. Nifty Metal index was the only sectoral index trading in the green amid weak sentiment across Dalal Street.
The Nifty Metal index rose over 0.5%, as against a 1.5% fall in the benchmark Nifty 50.
NALCO shares rose more than 6% to trade at around ₹395 apiece, while Hindalco shares gained over 5% to trade at nearly ₹913 apiece. Vedanta also added 4.5% to the day’s high of ₹678.60. Among other metal stocks, SAIL also jumped 5% while Jindal Stainless, Ratnamani Metals, and Welspun Corp added over 1% each.
Aluminium prices on the London Metal Exchange (LME) jumped 6% on Monday to hover near four-year highs. The benchmark three-month aluminium contract on the LME rose to $3,492 per metric tonne.
Aluminium Bahrain, which operates the world’s largest single-site smelter, said on Sunday that it was evaluating the damage caused by Iranian strikes. Emirates Global Aluminium, meanwhile, said its facility had suffered “significant damage”.
Fears of disruption to aluminium supplies have intensified since the war broke out earlier this month, after US-Israeli strikes killed Iran’s former supreme leader Ayatollah Ali Khamenei and triggered a massive retaliation from Tehran. Concerns have now grown over the possibility of a ground offensive and the involvement of Yemen’s Iran-aligned Houthis.
Producers in the Gulf, which accounts for around 9% of global aluminium supply, have been unable to ship cargo through the Strait of Hormuz amid rising uncertainty. Aluminium Bahrain had already begun shutting smelting lines representing 19% of its capacity earlier this month, and the latest damage is likely to deepen the disruption.
JM Financial urged caution, saying supply disruptions are unfolding at a time when demand momentum is weakening, which could cap any sustained upside. “Overall, while supply disruptions and cost pressures continue to provide a floor to aluminium prices, the balance is gradually shifting, with demand sensitivity at higher price levels likely to drive increased volatility going forward,” it said.
“Hindalco’s India operations, Vedanta and NALCO remain the key beneficiaries of higher aluminium prices for 1HFY27E, even as 2H is likely to mark mean reversion as supply restrictions ease. All in all, we recommend approaching aluminium names with caution,” it further said..
Stock Market Today
Indian equity benchmarks slumped 1.5% on Monday, March 30, mirroring weakness in global markets as the US-Iran war entered its fifth week, heightening concerns over rising crude oil prices and inflation.
Investors lost around ₹5 lakh crore within minutes, with the overall market capitalisation of BSE-listed firms falling to ₹417 lakh crore from ₹422 lakh crore in the previous session.
The Sensex tanked 1,256 points, or 1.7%, to touch an intraday low of 72,326.54, while the Nifty 50 dropped 366 points, or 1.6%, to hit the day’s low of 22,453.
Asian markets largely traded in the red on Monday morning as investors grew increasingly concerned about surging oil prices and the possibility of a further escalation in the ongoing U.S. war with Iran.
The weakness across Asian equities came after a sharp sell-off on Wall Street last Friday, which marked a fifth straight week of losses for U.S. markets — their longest losing streak in nearly four years.
In the oil market, Brent crude advanced as much as 3.7% to $116.75 per barrel on Monday, while West Texas Intermediate moved above $100 after Yemeni Houthi forces launched their first attacks on Israel over the weekend, further escalating the US-Israel conflict with Iran in the Middle East.
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