Aluminum stocks in focus amid Ukraine Russia conflict; know which Indian companies expected to benefit

The Ukraine-Russia conflict has caused a lot of movement in the aluminium stocks in the domestic markets. Market Guru and Zee Business Managing Editor Anil Singhvi said that the aluminium stocks are in focus. There is much action among the aluminium companies.

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"Well, all the commodities are rising. Furthermore, the supply chain will also be impacted due to the conflict between Russia and Ukraine," Zee Business' Kushal Gupta said in this report.

He pointed out that the commodity that has been in focus in this regard is aluminium. There can be new sanctions on Russia from USA and Europe.  

Gupta pointed out, "Russia is the second-largest producer of aluminium in the world. Also, Russia is responsible for supplying almost 5 to 6 per cent aluminium globally. So, the situation may impact its prices."

He further added that there has already been a deficit of aluminium because of the high prices of energy in Europe and also China was under supplying. Now, with the fresh supply chain disruption, this will be witnessed again, especially due to the conflict between Russia and Ukraine.

Gupta also pointed out that Russian company RUSAL witnessed a fall of more than 20 per cent which happened to be its biggest fall since April 2018. Furthermore, in April 2018 also USA imposed sanction on Russia.

In this regard, the Indian aluminium companies will be in an advantageous position. These companies include DALCO, NALCO and Vedanta.

Gupta also informed, "If there is supply disruption in Russia, India will be able to export aluminium globally and all the aluminium producers may get a big advantage."
Speaking of the Indian markets, on Tuesday, the domestic markets reduced losses in the last session after correcting more than 2 per cent in the opening trade on back of an uncertainty due to the Russia-Ukarine tension to end more than half per cent lower.

Also, this recovery helped Nifty50 to reclaim 17,000 and close near 17, 100 at the market closing. On the other hand, Sensex closed with nearly a loss of 400 points. Benchmarks Nifty and the Sensex ended a highly volatile day at 17,092.20 and 57,300.68 respectively.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)