Hindalco shares jumped over 5.5 per cent to their 52-week high of Rs. 136.20 on Tuesday, tracking strong numbers of Alcoa, which is the world’s third largest producer of aluminum. Hindalco was the top gainer in the Nifty50 index.
Alcoa on Monday posted better than expected second quarter results, leading to a 4 per cent rise in its shares. The company beat Wall Street expectations in both earnings and revenue, analysts said.
Alcoa’s earnings beat has raised expectations that Mumbai-based Hindalco, along with its US subsidiary Novelis, will report strong numbers for the June quarter. Aditya Birla Group’s Hindalco is one of the world’s largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia.
Alcoa beat estimates at a time when aluminium prices have been declining. The metal now trades for roughly $1,640 per metric ton on the London Metal Exchange, down from $1,800 last year.
Hindalco shares closed 4.80 per cent higher at Rs. 135.25, outperforming the broader Nifty that ended 0.6 per cent higher.