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Hindalco shares jump 5%; why metal stock is top Nifty50 performer today

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Hindalco share price: Shares of Hindalco Industries gained after two days of consecutive losses and rose more than five percent on Friday. Market experts believe rival Alcoa Corporation temporarily shutting down aluminium production at its plant, is a positive for Hindalco which is likely to have pushed the stock higher today. The stock has given a breakout at Rs 463 today and in the next 2-3 months, the stock could give around 15 percent return.

Hindalco shares jump 5%; why metal stock is top Nifty50 performer today
Shares of Hindalco Industries gained after two days of consecutive losses and rose more than five percent on Friday, becoming the top gainer on Nifty50. At 11:36 am, the stock was up 5.2 percent at Rs 472.85 on BSE.
Market experts believe rival Alcoa Corporation temporarily shutting down aluminium production at its plant, is a positive for Hindalco which is likely to have pushed the stock higher today.
A news report said that global aluminium major Alcoa Corporation is set to halt primary aluminium production at its plant in Spain for two years.
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The curbs at Europe's second-largest aluminium plant come after energy costs spiked to fresh records last week, putting heavy industries under a financial strain, the report added.
"With the plant closing temporarily even, aluminium prices which had firmed up are likely to sustain. This means better realisation and sales for Hindalco," said Purvesh Shelatkar, Head of Institutional Broking, Monarch Networth Capital.
Shelatkar highlighted that Hindalco is the best company in the metal space, on environmental, social, and governance parameters. The stock is a good play from a long-term perspective and is also a potential re-rating candidate from a short-medium perspective, he added.
Considering the above, Shelatkar believes the stock has the potential to double in a period of one or two years.
Meanwhile, Kkunal Parar, Vice-President Research at Choice Broking said that the stock has given a breakout at Rs 463 today and in the next 2-3 months, the stock could give around 15 percent return.
Parar suggests one could consider Rs 445 as the stop loss with a target of Rs 523-550 from a 2-3 month horizon.
Domestic brokerage firm Sharekhan says 'buy' Hindalco shares with a stop loss at Rs 449 and first target of Rs 518 and second target of Rs 552.
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