30 MAY 2011www.steelguru.com
Novelis earnings lift Hindalco shares
Edited by : AL CIRCLE
1 min read
ET reported that shares of Hindalco Industries were the biggest Sensex gainer after the company's US arm Novelis posted a turnaround in its Q4 earnings.
The stock rose 5.8% to 197.50. But investors are not willing to bet on the stock in the long term. Investors are turning cautious on commodities, including metals, as the Fed's second bond buyback program comes to an end in June.
With global liquidity expected to dry up post QE2, analysts expect fund flow into global commodities to recede. China's policy rate tightening measures to cool inflation and demand will also impact metal prices. Analysts don't rule out a sharp correction in metals mainly aluminum. Aluminum constituted 32% of Hindalco's operating profit in 2011 to 2012.
The stock rose 5.8% to 197.50. But investors are not willing to bet on the stock in the long term. Investors are turning cautious on commodities, including metals, as the Fed's second bond buyback program comes to an end in June.
With global liquidity expected to dry up post QE2, analysts expect fund flow into global commodities to recede. China's policy rate tightening measures to cool inflation and demand will also impact metal prices. Analysts don't rule out a sharp correction in metals mainly aluminum. Aluminum constituted 32% of Hindalco's operating profit in 2011 to 2012.
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