NALCO defies market trends: surges 3.18% despite broader downturn

National Aluminium Company (NALCO) experienced an eventful trading session on January 31, 2025, surpassing the nation’s aluminium sector. Despite trading below past key moving averages, it delivers a high dividend yield. The stock’s recent performance contrasts with broader market trends.

NALCO’s share price is steadily more dependent on international fluctuations in alumina prices, as alumina is a primary raw material used in the production of aluminium. The state-run company is integral to the alumina as it sells a considerable portion of its manufactured goods in the open market.

The company has upped by 3.18 per cent on January 31, 2025. This performance has marked the stock at an outperforming position as compared to its sector by 1.91 per cent, highlighting its relative strength in the aluminium & aluminium Products industry. The stock climbed to an intraday high of INR 197.3 (US$ 2.28), with a 2.15 per cent boost during the day’s trading session.

In spite of Friday’s positive motion, NALCO’s present trading range is below its 5-day, 20-day, 50-day, 100-day, and 200-day moving standards, with a clear implication to a potential area of concern for long-term trends. However, the company is yet to slip away from its high dividend yield of 4.14 per cent, which may appeal to income-focused investors.

In the broader market context, the stock’s one-day performance of 3.18 per cent contrasts with the Sensex, which had a modest gain of 0.59 per cent. Over the past month, the stock has encountered challenges, experiencing a decline of 5.88 per cent, while the Sensex decreased by 1.18 per cent. Overall, NALCO continues to navigate a dynamic market landscape, demonstrating resilience in today’s trading session.