Price hike move adds sheen to Nalco

DALAL STREET SPIKES

The share price of aluminium major Nalco registered gains on Monday after the company announced a hike in prices by Rs 2,500 per tonne.

The stock, in intra-day trades, touched a high of Rs 182.60, before closing at Rs 177.50, up 1.25 per cent from its previous close. The counter attracted an impressive volume of more than 3.35 lakh shares on the Bombay Stock Exchange (BSE) on Monday.

Analysts said expectations of a price rise led to a rally in most aluminium stocks in the last few days at a time when global aluminium prices hit the roof on the London Metal Exchange. Even Hindalco was up 0.31 per cent to Rs 1,387, after hitting the day's high of Rs 1,408 on the back of strong institutional buying.

The prospects of metal prices remain firm due to strong demand from China and India have driven the interest in metal scrips, according to market sources.

The global aluminium industry has shown a nine per cent growth in consumption since January this year, with the US markets growing at a healthy rate of around 11 per cent.

However, production has been lower at around seven per cent.