Decade-high Aluminium price can spark up to 25% rally in these metal stocks

The stock of Hindalco is attempting to close decisively above the resistance of Rs 475 with strong volume

Base metal stocks including Hindalco, Vedanta and National Aluminium were in focus on Wednesday as a spike in Aluminum prices brighten earnings prospects.

Early this week, aluminium reached $3,000 a ton in London for the first time in 13 years amid expectations that supply disruptions are here to stay, while demand keeps rising. The metal kept climbing even after a 15 per cent surge over the last three weeks. READ MORE

According to Yash Sawant, research associate at Angel Broking, limitation on energy-intensive smelting capacities and restricting illegal over-production (western Xinjiang region) has hampered Aluminum supply chain.