Hindalco, NALCO, Vedanta stocks rally as Aluminium hits $2,850
Shares of India’s aluminium and copper producers, including Hindalco Industries, NALCO, and Vedanta, surged by up to 5.3% on Friday, October 24, following a sharp rally in global aluminium prices. On the London Metal Exchange, three-month aluminium touched $2,853 per metric ton earlier in the week and was trading at $2,810 by 11:45 IST. Domestic aluminium for November delivery rose to ₹268.65 per kg, marking its fourth consecutive session of gains.
NALCO led the intraday rally, climbing 5.3% to ₹240, while Hindalco Industries hit an all-time high of ₹826, up 4.3%, and Vedanta rose 3.7% to ₹501. This upswing extends their gains for a third straight session, highlighting the companies as key beneficiaries of the base metal price surge, News.Az reports, citing foreign media.
The rally was fueled by global supply concerns. A smelter owned by Century Aluminum in Iceland curtailed production by two-thirds due to an electrical equipment failure. In China, aluminium output is approaching the 45-million-ton cap, while the government has lowered next year’s base metal production growth target from 5% to 1.5%. Additionally, Alcoa’s closure of its Kwinana alumina refinery in Australia has contributed to a nearly 25% drop in LME primary aluminium stocks this year.
Indian companies are well positioned to benefit. Hindalco’s domestic operations are closely tied to aluminium prices, while NALCO gains through both aluminium and alumina sales. Vedanta, which derives a substantial portion of its revenue from aluminium, is expected to demerge its aluminium business soon. The Vedanta Group also announced plans to invest an additional ₹1 lakh crore in Odisha, including a ferro-alloys plant in Keonjhar and two new aluminium parks, building on its existing investments in the state.
With global aluminium prices continuing their upward trajectory, Indian aluminium producers are poised for further gains, making them a focus for investors amid broader market volatility.
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