Hindalco plunges 4% in a five-day slump while Vedanta and Nalco follow suit

Hindalco Industries is deep in the red, marking its fifth consecutive losing session with a sharp 4.36 per cent decline on April 4. The aluminium giant has shed 9.78 per cent in just five days, underperforming its sector by 0.84 per cent and sinking below key moving averages—an unmistakable sign of a bearish trend.

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Vedanta took a harder hit, tumbling 8.45 per cent to INR 402.40 (USD 4.71), while Nalco slumped 7.38 per cent to INR 159.90 as the broader aluminium sector lost 4.48 per cent. Hindalco’s intraday low of INR 622.55 (USD 7.28) reinforces the downtrend, with the stock now trading beneath its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

Meanwhile, the Sensex followed suit, plunging 362.03 points (0.65 per cent) to 75,798.06, staying below both its 50-day and 200-day moving averages—a textbook bear signal.

While Trump’s 26 per cent tariff on India doesn’t directly hit metals, concerns over a potential US and global slowdown spell trouble for aluminium prices. Analysts at Emkay predict that if aluminium prices drop to USD 2,300 per tonne, EBITDA sensitivity could see Nalco take a 28 per cent hit, while Vedanta and Hindalco face 25 per cent and 20 per cent declines, respectively.

Along with the US aluminium and steel tariff, Hindalco’s international arm, Novelis, has recently announced the closure of two of its US manufacturing sites, hinting at the overall health issue of the business.

However, The overall implication of the tariff seems to be evidently frightening for countries, companies, and, above all, people who are directly or indirectly involved with the base metal industry.

Source: https://www.alcircle.com/news/hindalco-plunges-4-in-a-five-day-slump-while-vedanta-and-nalco-follow-suit-113737