Indian aluminium stocks, like Hindalco Industries Ltd., Vedanta Ltd. and National Aluminium Co., fell as much as 9% intraday on Friday.
The fall was mainly due to chances of aluminium prices becoming higher in the short term, as Trump imposed extensive and high tariffs on the world.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
Tariff Impact
While Trump's 26% tariff on India does not have a direct impact on the metal sector, the increased risk of a US or global slowdown stand as a negative for aluminium prices, and thereby, earnings and valuations of aluminium companies.
Potential Fall In Aluminium Prices
As per Emkay:
A US or global slowdown can lead to aluminium prices falling down to $2,300 per tonne.
A US or global recession can lead to aluminium prices falling down to $1,900 per tonne.
After a 1.8% intraday fall overnight, aluminium price stood at $2,420 per tonne on Friday.
What's The Ebitda Impact?
According to Emkay, in a scenario where aluminium prices fall to $2,300 per tonne, Nalco's Ebitda sensitivity stands at 28%. While for Vedanta and Hindalco, it stands at 25% and 20%, respectively.
A US or global slowdown could cause the share prices of Hindalco, Vedanta and Nalco to fall 29%, 34% and 26%, respectively, according to Emkay.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.