Indian aluminium scrips shine thanks to firm prices on LSE
03 May 2003
Mumbai: Firm aluminium prices on the London Metal Exchange (LME) are prompting the recovery of leading aluminium scrips such as Hindalco and Nalco in the stock exchanges.
From January to March 2003, aluminium prices on the LME have jumped by $66, moving from $1,270 per tonne to $1,336 per tonne. Prior to that, LME prices had gained very low grounds. However, after 7 October 2002 onwards, aluminium prices on the LME have climbed steadily from a low of $1,195 per tonne.
Since 1 April, the prices of Hindalco has moved up from Rs 530 to Rs 625 per share, touching a 52-week high on Wednesday. However, Nalco stocks continued to drift downwards, due to the uncertainty over the disinvestment process. It has shed slightly from Rs 93 on 1 January to Rs 87 on 23 April 2003.
"Now the aluminium prices on the LME are hovering around $1,336 per tonne, marking a 7-8 per cent price gain in the last few months," says Nikhil Thakker of Sushil Finance, a market research firm. The Hindalco stock, the leader in the category, has gained around Rs 150 since 28 October 2002 and closed at Rs 625 on the Bombay Stock Exchange (BSE) on Thursday.
Other Aluminium scrips like Indal, Madras Aluminium and Man Industries also gained on the BSE and the National Stock Exchange. Indal gained over 4 per cent during the three-month period and closed at Rs 120 as against Rs 115 on 1 January 2003.
Madras Aluminium and Man Industries too have rallied in the positive territory over the three-month period. Dealers say mutual funds and institutions are actively trading in Hindalco and Nalco. Hindalco has gained mostly from the firm global aluminium prices.