Financial Daily from THE HINDU group of publications
Friday, Oct 11, 2002
Financial Daily from THE HINDU group of publications Friday, Oct 11, 2002 |
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Markets
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Stock Markets Hindalco stock touches new low Our Bureau
MUMBAI, Oct. 10 THE stock price of aluminium major, Hindalco Industries, on Thursday touched a new 52-week low due to the depressed international aluminium prices, according to analysts. The stock touched its 52-week low of Rs 483.75 on the BSE and on the NSE, the new low was Rs 484.05. However the stock closed marginally higher at Rs 487.65, down 3 per cent from Wednesday's close on the BSE. On the NSE, the stock ended at Rs 488, down 3 per cent. Analysts say that so long as aluminium prices remain subdued, the Hindalco share is not likely to register any increase. Besides, the demand in the domestic as well as international markets is weak. "Due to domestic prices being linked to international prices, profits margins for aluminium companies would remain under pressure," said an analyst with a domestic broking firm. However, he said the stock price of the other leading player, Nalco is on the rise due to disinvestments hopes, and not on fundamentals. International price of aluminium alloy on the London Metal Exchange (LME) has fallen from around $1,300 per tonne to around $1,215 per tonne in the last few months. The stock price of Hindalco is also under pressure since last month due to power generation being partly affected since September 12, due to continuous heavy rains in the area of Hindalco's captive power plant at Renusagar. Consequently, aluminium production has also been affected as the company was forced to close down about 200 pots out of 1,593 operating pots, resulting in production loss of aluminium metal by about 2,000 tonnes. The company had said that normalcy was likely to resume in about two weeks. Since the statement of production loss, the stock price of Hindalco has fallen by 17.45 per cent from Rs 592 to Rs 487.65 on the BSE. Dealers said most of the selling in Hindalco shares in the last month had been by the FIIs. An analyst with a domestic broking firm said the fall in the stock price was also due to loss on sale of Mangalore Refineries & Petrochemicals Ltd (MRPL) stake to ONGC. The company sold 9,56,95,742 equity shares of MRPL at Rs 2 per share to ONGC. The other Aditya Birla group companies also sold shares of MRPL to ONGC.
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