Hindalco hits 52-week high, Nalco rises higher as LME bans from its system Russian metal
Hindalco hit a 52-week high on BSE on Monday (April 15, 2024) after the LME on Saturday banned from its system Russian metal produced on or after April 13 to comply with new U.S. and UK sanctions imposed for Russias invasion of Ukraine. The sanctions aim to restrict revenues for Russia from the export of metal produced by companies such as Rusal and Nornickel that help to fund its military operations in Ukraine.
Metal stocks such as Hindalco and National Aluminium Co Ltd (NALCO) traded in green on BSE on Monday after the London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13. Hindalco rose by over 4.60 per cent to hit a 52-week high later in the day.
After the ban, the price of aluminum increased by nine per cent and the price of nickel rose by more than eight per cent in the international market.
Here's how Hindalco and Nalco were trading after the ban.
Hindalco share price
The metal stock jumped by 4.63 per cent to Hindalco's 52-week high of Rs 625.20 after closing at Rs 597.55 on Friday.
The stock of the company closed trading higher by 2.67 per cent, or Rs 15.95, at Rs 613.50 on Monday.
The stock's previous 52-week high was Rs 620.60.
NALCO share price
The metal stock jumped by 3.62 per cent to the day's high of Rs 184.70 on Monday after the previous close of Rs 178.25.
The stock of the company was trading up by 1.82 per cent, or Rs 3.25, at Rs 181.50 on Monday.
The stock's 52-week high is Rs 188.70.
What is LME's metal ban?
The LME on Saturday banned from its system Russian metal produced on or after April 13 to comply with new U.S. and UK sanctions imposed for Russia's invasion of Ukraine.
The sanctions aim to restrict revenues for Russia from the export of metal produced by companies such as Rusal and Nornickel that help to fund its military operations in Ukraine.
The U.S. Treasury Department and the British government on Friday prohibited the 147-year old LME and the Chicago Mercantile Exchange (CME) from accepting new Russian production of aluminum, copper and nickel.
JP Morgan on Hindalco
After the development of the LME's ban, JP Morgan has maintained an 'overweight' rating on Hindalco, raising the share price target to Rs 665 from Rs 600.
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