MUMBAI, Jan. 6 -- National Aluminium Co., India's second-biggest producer of the metal, gained the most in more than seven months after rival Aluminum Corp. of China Ltd. increased prices.
The shares jumped 15.2 percent to 505.4 rupees at 3:30 p.m. close in Mumbai, the most since May 19. Hindalco Industries Ltd, India's biggest aluminum producer, gained 7.2 percent to 175.2 rupees, the highest level since May 2008.
The U.S. Institute for Supply Management's factory index rose last month to the highest level since April 2006. Europe's manufacturing industry expanded at the fastest pace in 21 months in December and Chinese factory activity expanded by the most in five years in December, reports showed yesterday.
"Global demand is on the rise and investments by governments through stimulus packages will keep the metal buoyant," said Chirag Shah, an analyst at Mumbai-based IDFC- SSKI Securities Ltd.
Aluminum Corp., known as Chalco, advanced as much as 9.3 percent, the most since June 1, 2009, and was up 9 percent at HK$9.49 when trading ended. The company raised alumina prices 5.7 percent, the third increase in five months, and the price of aluminum by 7.8 percent from a month ago, according to a table on its Web site yesterday.
B.L. Bagra, finance director at Bhubaneswar-based National Aluminium declined to comment on the rise in the share price.
The government owns 87.1 percent of the company.
