Hindalco, Vedanta, Nalco shares trade near 52-week highs: What's driving the gains? - explained

livemint.com:

Hindalco Industries , Vedanta , National Aluminium Co. Ltd (Nalco) share prices have risen 54-133% in last one year. While Hindalco Industries share price scaled 52-week highs on Thursday, Vedanta and National Aluminium Co.

Ltd (Nalco) share prices are trading near 52-week highs scaled on 15th May'2024, The improvement in Aluminium prices has been one of the reasons for these gains in Hindalco Industries , Vedanta , National Aluminium Company (Nalco) share prices . The Aluminium prices on the London Metal Exchange that were trading close to $2100 a tonne level in February however are trading above $2500 a tonne level. Also Read- HAL share price hits lifetime high ahead of Q4 results 2024. Do you own? The Aluminum demand has been rising and expectations are that China demand has already bottomed out.

The rising China demand, the largest consumer of commodities in the world, can lead to significant impact of Demand-Supply balance for Aluminium and leading to a Aluminim deficit . Analysts at Kotak Institutional Equities as per April report had already raised their Aluminium price forecast by 6% and 8% for FY2025 and FY26, and thus raised earnings and fair value of Hindalco, Vedanta and National Aluminium. Also Read- Honeywell Automation share price jumps 15% from intraday lows; Buy or Sell? Ankit Hakhu, Director, CRISIL Ratings, said that the domestic demand, accounting for almost half of the domestic primary Aluminium sales volume had risen 10% in the past two fiscals and is likely to rise 7-9% this fiscal (FY25).