Hindalco Industries shares hit key price as industrial metals jump

April 15, 2024 09:05 PM PDT | By Invezz

Hindalco Industries shares hit key price as industrial metals jump — Image source: Invezz

Copper and aluminium prices have surged

Hindalco Industries is one of the biggest companies in India with a market cap of over $16 billion. This makes it the 57th biggest publicly traded company in the country. It is mostly owned by Aditya Birla, a leading Indian conglomerate.

Hindalco Industries has done well in the past few years, helped by the growth of the Indian economy. Data published by the statistics agency showed that the economy expanded by over 8% in 2023. And economists believe that the economy will grow by 8% this year.

In real times, the Indian economy rose to over $3.4 trillion, much higher than $1.83 trillion in 2020. Most of this growth happened because of high government and corporate spending. Government spending has been growing in the past few years as it expanded key infrastructure projects.

There is a likelihood that government, corporate, and consumer spending will continue growing in the coming years. Hindalco, as a leading aluminum and copper producer, has benefited from this trend.

The company is also benefiting from the soaring industrial metal prices. Copper surged to its highest point since June 2022. It has soared by almost 40% from its lowest point in 2020.

Aluminum price has also bounced back. It jumped to its highest point since May 2022 as it jumped by over 21% from its lowest point in 2020.

This performance is because of the growing global economy. Data released on Tuesday showed that China’s GDP rose by 5.2% in the first quarter, higher than the median estimate of 4.8%. Its industrial production rose by 6.1% on a YoY basis.

Industrial metal prices have also risen because of the actions of Western governments to ban Russia’s metals. The UK and the US barred Russian metals from key exchanges like the London Metals Exchange (LME), a move that will benefit Hindalco.

Russia is a major player in the metals market. It is responsible for about 6% of global aluminium market and 4% of copper.

Hindalco Industries has been doing well. Its financial results revealed that the company’s revenue jumped to over 77,464 rs crore in 2023 from the previous year’s 68,188 rs crore. However, the rising operations costs pushed its profit downwards to 4,875 rs crore.

Hindalco Industries share price forecast

Hindalco chart by TradingView

Turning to the daily chart, we see that the Hindalco stock price has been in a strong bullish trend for a while. This rally intensified after the stock formed a golden cross pattern in July last year. Golden cross happens when the 200-day and 50-day moving averages make a bullish crossover.

Hindalco Industries shares jumped to a key resistance point at INR 621, a notable level since it was its highest point in January. It has formed what looks like a double-top pattern, which is a bearish sign.

Therefore, more upside will only be confirmed if the price moves above the crucial resistance at INR 621. If this happens, the stock will likely continue rising as buyers target the crucial resistance at 700 INR.

The post Hindalco Industries shares hit key price as industrial metals jump appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content) is a service of Kalkine Media LLC., having Delaware File No. 4697309 (“Kalkine Media, we or us”) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.