Hindalco in limelight on price hike reports

DALAL STREET SPIKES

Aluminium major Hindalco was in the light hitting a high of Rs 1,400 in the morning trade following the reports that the company is planning to increase the aluminium prices by Rs 2,000 per tonne.

As a result, the counter witnessed buying interest with domestic as well as the foreign institutional investors (FII) adding the stock to their portfolios. Market was abuzz with rumours that the company is also planning bonus issue and stock-split.

Hindalco has been on an upside swing mode since the beginning of this month as the market was anticipating price hike in aluminium. The stock, in Tuesday's trading, gained Rs 3 to close at Rs 1,349.95 with 83,840 share changing hands at the BSE.

Since February 3, the stock has appreciated over 21 per cent from Rs 1,140 to yesterday's close of Rs 1,349. According to market analysts, with the proposed hike, domestic aluminium prices are expected to go up by nearly 8 per cent thus adding to the company's bottomline.