Hind Zinc zips up on global price rise

Dalal Street Spikes

 The stock went up by 6.63 per cent to close at Rs 79.60 after hitting an intra-day high of Rs 80 amid a volume of 2.67 lakh shares.

 Global zinc prices have appreciated in the last few trading sessions and are ruling at near two-year high.

 Zinc prices on LME have gained 12.2 per cent to $936 per tonne on October 22 from $834 per tonne on October 1. Price of non-ferrous metals have surged sharply on LME on the back of expectations of a global economic recovery.

 The strength in the domestic economy has further fuelled the rally in the stock in recent months. With a good monsoon this year, economists have forecast a rebound in the Indian economy for FY04.

 HZL is the largest producer of zinc and lead in India. The company is undertaking a major expansion programme to double the current manufacturing capacity of 1.69 lakh tonnes.

 The expansion plan also entails the setting up of a 150 MW captive thermal power plant. HZL is in the process of raising $125 million through external commercial borrowings (ECB) to part-finance its expansion.