Shares of Hindalco Industries rose sharply by about 7 per cent on Thursday, March 5, 2026. The rise occurred as global aluminium prices went up due to supply disruptions in the Middle East. Because of this increase, Hindalco became one of the best-performing stocks in the Nifty 50 and the Nifty Metal Index. During the same trading session, the Nifty Metal Index also recorded a gain of more than 3 per cent.

The increase in aluminium prices and the rise in the metal stocks were mainly linked to growing geopolitical tensions in the Middle East, particularly tensions related to the US-Iran Conflict. The Qatari smelter Qatalum announced a temporary shutdown, while its shareholder Norsk Hydro declared a force majeure to its customers, indicating that production had been halted. This situation followed an earlier announcement by QatarEnergy, which reported suspending liquefied natural gas (LNG) production after drone attacks from Iran.

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Additionally, shipping disruptions in the Strait of Hormuz, an important global route for maritime trade and energy transportation, have increased concerns about supply shortages. This is significant because the region accounts for a large share of global aluminium production.

Hindalco Industries, the main metals company of the Aditya Birla Group and one of Asia’s largest primary aluminium producers apart from China, recorded a strong rise in its share price. The stock opened about 1 per cent higher at INR 930 (USD 10.14) and soon reached an intraday high of  INR 983.50 (USD 10.73), reflecting a gain of around 6.7 per cent. By midday, Hindalco shares were trading nearly 5.3 per cent higher at about INR 970 (USD 10.58). During this period, approximately 8.3 million shares were traded at an average price of INR 968.7 (USD 10.57) per share.

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The company’s performance followed the overall upward movement in the Nifty Metal Index, which increased by about 1.9 per cent, and became the best-performing sectoral index for the day. Other major metal companies also recorded gains. Shares of National Aluminium Company (NALCO) rose by more than 5 per cent to around INR 393 (USD 4.29), while Vedanta Limited increased by over 4.5 per cent.

The main reason for the stock market rally was the sharp rise in aluminium prices. On the Multi Commodity Exchange (MCX), aluminium futures for April delivery increased by INR 4.90 (USD 0.05), about 1.47 per cent, reaching INR 338.50 (USD 3.69) per kilogram. This rise reflected increased trading activity by investors and positive sentiment in the market.

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Market analysts showed a positive outlook for the stock of Hindalco Industries after the recent rally. Nilesh Jain, Vice President and Head of Derivatives and Technical Research at Centrum Broking, stated that the rise in Hindalco’s stock reflects the strong performance of the overall aluminium sector. He explained that the stock is currently trading above all major moving averages, which indicates a bullish trend. 

Jain also noted that Hindalco crossed the INR 935 (USD 10.20) level during Thursday’s trading session, supported by higher trading volumes and increased derivatives activity. According to him, the stock could potentially rise to around INR 1,020 to 1,030 (USD 11.13 to 11.24) and may even reach a new record high, making it a possible “buy on decline” (purchasing an asset after its price has dropped) opportunity.

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A similar view was shared by Amol Athawale, Vice President of technical research at Kotak Securities. He observed that after a short-term decline, Hindalco’s stock formed a positive reversal pattern on both daily and weekly charts. Athawale advised positional traders to treat this as an important support level. He stated that the upward trend is expected to continue as long as the stock stays above this level. He also suggested that the stock may rise to the INR 1035 to 1045 (USD 11.29 to 11.40) range.

Note: The image used in this article is generated with an AI tool and does not depict any real-time moment