Hindalco, Nalco slip 9% as US softens stance on aluminium producer Rusal

Shares of National Aluminium Company (Nalco) and Hindalco Industries have fallen more than 9% on the BSE as fall in aluminium prices after the Trump administration has signalled it could ease sanctions against Russian aluminium producer Rusal.

Nalco has tanked 10% to Rs 75.85, while Hindalco Industries plunged 9.5% to Rs 232 on the National Stock Exchange (NSE) in early morning trade on Tuesday. Vedanta and Hindustan Copper were down 3% each on the NSE.

At 09:44 am; Nifty Metal index, the largest loser among sectoral indices, was down 2.7% as compared to 0.11% rise in the Nifty 50 index. The S&P BSE Metal index was down 3.4% in intra-day trade today.

LMEX, a gauge of six metals traded on the London Metal Exchange (LME), slipped 3% on Monday after fall in aluminium prices.

“Aluminum prices on the LME tumbled 8.7% on the U.S. Treasury Department announcement, which gives Rusal longer to sell off large quantities of aluminum it had been stockpiling in the wake of sanctions,” the Reuters report suggested. CLICK HERE TO READ FULL REPORT.

In past 13 trading days, Nifty Metal index had rallied 11% as compared to 4.5% rise in the benchmark index till Monday. During the period, the stock of Hindalco and Nalco surged up 27% and 21%, respectively. Hindustan Copper (up 16%) and Vedanta (up 11%) were up more than 10%.