NALCO, Hindalco and others stocks face pressure today: Unlock why

Major Indian aluminium companies have faced a sharp decline in their share prices on June 19, with the Nifty Metal index falling below 0.5 per cent. Today, Hindalco Industries' share fell by 0.76 per cent at the closing, and NALCO’s by 2.87 per cent. Current geopolitical tensions, strong US dollars, and profit-taking are the significant causes of the decline in stock prices. 

Hindalco share price analysis

On June 19, Hindalco Industries' closing price was recorded at INR 639.50 (USD 7.66) after opening the market at INR 643 (USD 7.70) reaching the highest price at INR 644.70 (USD 7.72). The previous day, the market opened at INR 643.85 (USD 7.71) and closed at INR 644.40 (USD 7.71), with the highest price reaching INR 646.85 (USD 7.75). A difference of 0.34 per cent is seen between today’s and previous day’s highest share price. 

On the same day the previous month, the share price stood at INR 658.35 (USD 7.88), followed by the highest price of INR 663 (USD 7.94) on May 21. However, subsequently, the downward movement of the share price began, with the lowest price seen on May 30 at INR 633.50 (USD 7.59).

The downtrend continued with the price opening the month of June at  INR 631.10 (USD 7.56). Nonetheless, the graph showed an upward trajectory on June 10, when the share price rose to INR 658.35 (USD 7.88), but again began to fall on June 13, standing at INR 641.80 (USD 7.68) versus INR 651.05 (USD 7.80) recorded on the previous day.

NALCO share price analysis

As of today, NALCO's share price stood at INR 181.50 (USD 2.17), whereas the market opened at INR 186.19 (USD 2.23). NALCO's share price reached its highest at INR 186.70 (USD 2.24). The firm witnessed the highest share price, INR 191.70 (USD 2.30), on June 10.  A difference of 0.053 per cent is seen between today’s and previous day highest share price. 

On the same day of the previous month, NALCO's share price stood at INR 181.93 (USD 2.18). In May, the lowest price was at INR 177.19 (USD 2.12), although the month closed at INR 180.35 (USD 2.16). On June 2, NALCO’s share price began the month at INR 180.77 (USD 2.16), remaining range-bound compared to the previous day, but recorded growth in the succeeding days until it reached INR 191.70 (USD 2.21). However, successively, the price decreased and reached INR 181.50 (USD 2.17) as of June 19.

Reasons for fluctuating share prices

• The Nifty Metal index fell by 0.5 per cent in an otherwise flat market, marking its third consecutive session of loss
• Escalating conflicts in the Middle East and the United States' increased military involvement have driven up oil prices and heightened uncertainty, exerting pressure on metal stocks given their vulnerability to energy costs and geopolitical tensions..
• An intense and prolonged dollar rally and possible US rate hikes may reduce global metal demand, especially from dollar-reliant markets like China, which impact Indian producers despite short-term supply control.