Hindalco, Nalco jump over 2% as aluminium, copper prices rise on LME

The BSE Metal index was the top performer, up 1.4 per cent; Major metal and mining related shares gained 1-2 per cent each in intra-day trades on Friday.

Aluminium majors - Hindalco and National Aluminium (Nalco) jumped over 2 per cent each to a high of Rs 430.6 and Rs 81.65, respectively, in Friday's intra-day trades tracking gains in the base metals on the London Metal Exchange (LME).

Overnight, benchmark aluminium on the London Metal Exchange was up 1.6 per cent at $ 2,271 a tonne, while copper added 2.5 per cent to $ 7,811 by 1600 GMT on Thursday amid worries that stoppages due to high energy prices or other disruptions will spur shortages.

According to a Reuters report, Gianclaudio Torlizzi partner at consultancy T-Commodity in Milan said LME aluminium was getting an added boost because a physical arbitrage window from the LME to China had opened for the first time in many months.

Back home as of 09:40 AM; Hindalco was up 2 per cent at Rs 429 on the back of 1.85 lakh share volume on the BSE. Nalco was up 1.6 per cent at Rs 80.90, with more than 5.13 lakh shares traded at the counter. Meanwhile, the S&P BSE Sensex stood 0.4 per cent higher at 59,927.

Meanwhile, among other metals and mining stocks, Vedanta surged 2.5 per cent to Rs 269. NMDC, JSW Steel, Jindal Steel, Tata Steel and SAIL were also up 1-2 per cent each. The BSE Metal index was the top gainer, up 1.4 per cent at 19,306.

For the quarter ended June 2022, Hindalco reported its highest ever quarterly profit in at Rs 4,119 crore, up 48 per cent on a YoY basis. Sales too rose by 40 per cent to Rs 58,020 crore, underpinned by strong US sales and higher revenue that cushioned the impact of pricier raw materials.

However, analysts warn that the global industrial metals scenario has been extremely confused since the Russia-Ukraine war. We have seen both cuts in supply and also falling demand. The new equations are not yet clear. READ ANALYSIS

That apart, in August 2022, Adani conglomerate led by Gautam Adani had announced its plan to invest Rs 57,575 crore in setting up an alumina refinery in Odisha.

"The High-Level Clearance Authority (HLCA) of the government of Odisha, headed by chief minister Naveen Patnaik, approved the Adani Group's proposal to set up two projects - a 4 MT p.a. integrated alumina refinery and a 30 MT iron ore (value addition) project" the report stated.