Despite stock market crash, why Nalco, Hindalco, Vedanta are rising

Hindalco, Vedanta, Nalco shares rise: Shares of aluminium producers Hindalco, Vedanta and Nalco rose up to 6% in early deals on Monday amid a surge in global aluminium rates. The rally in the metal stocks came despite a market crash in early deals. The metal prices zoomed up to 6% on the back of West Asia war. Aluminium Bahrain, which runs one of the world’s largest smelters and Emirates Global Aluminium PJSC, the top producer of the metal in West Asia came under attack from Iran on March 28. 

Emirates Global Aluminium and Aluminium Bahrain confirmed their plants were affected by the attacks, with injuries reported at both sites.

According to the International Aluminium Institute, Gulf countries account for about 8 per cent of global primary aluminium output, with most of it exported to international markets through the Strait of Hormuz.

Meanwhile, aluminium prices gained up to 6% to $3,492 a tonne in early trading on the London Metal Exchange (LME). Shares of Aluminum companies in Australia also rose in early trading.

Subsequently, Hindalco shares rose 4.84% to Rs 910 against the previous close of Rs 866.65. Market cap of Hindalco surged to Rs 2.04 lakh crore. 

Vedanta shares also zoomed nearly 4% to Rs 677.60 in early deals against the previous close pf Rs 649.55. Market cap of Vedanta rose to Rs 2.65 lakh crore. Vedanta shares were also affected by a report which said the metals and mining giant is set to be split into five firms early next month. In an interview to the Financial Times, Chairman Anil Agarwal said the long-delayed restructuring could create “phenomenal shareholder value”. 

National Aluminium Company Ltd (NALCO) shares too surged 6.30% to Rs 394.55 in early deals. Market cap of the firm stood at Rs Rs 72,299 crore on Monday. 

On the other hand, Sensex was trading at 72,583.69, down 999.53 points or 1.36 per cent. Nifty stood at 22,507.85, down 311.75 points or 1.37 per cent as Iran and US war intensified over the weeekend. Asian markets too tumbled with Japan's Nikkei and Korea's Kospi falling up to 3.3 per cent. Hong Kong shares were down 1 per cent. US stock indices had tanked 1.7-2.3 per cent on Friday.