Hindalco falls after peer Alcoa disappoints on earnings, outlook

Reuters Market Eye - Shares in Industries fall 1.2 percent after its global peer Alcoa Inc , the largest U.S. aluminium producer, reported a massive quarterly loss on Thursday and gave a stagnant outlook on global aluminium demand.

Excluding the impairment charge of $1.7 billion on smelter acquisitions and other special items, Alcoa group earnings fell to $40 million, falling short of analysts expectations.

Alcoa said it expected global aluminium demand to grow 7 percent in 2014, consistent with its 7 percent growth in 2013.

Analysts tracking the sector say Alcoa's stagnant outlook on global demand for aluminium does not bode well for Hindalco's U.S. subsidiary Novelis Inc.

 

(Reporting by Abhishek Vishnoi)