Heard on the Street: Aggressive buying by a fund lifts Hindalco 4%

Aggressive buying by a fund lifts Hindalco 4%

Shares of nonferrous metals producer Hindalco gained 4.1% to . 221.15 on Monday , supported by volumes higher than the two-week daily average. According to brokers tracking the stock, a large fund owned by an industrial house, known for its aggressive calls, was a buyer in the stock on Monday. According to analysts , the appreciation in yuan in the past few months has lead to higher import of commodities in China, firming up the prices of copper and aluminium. Analysts said that the improvement in its Canadian subsidiary Novelis’ recent earnings has also boosted sentiment for the stock of late. Hindalco, which will announce its second quarter results on November 9, is expected to post a consolidated net profit of around . 520 crore and revenues of . 5,740 crore. The buzz is this fund has also been accumulating shares of Tata Steel and Sterlite in its scheme which primarily bets on metal and mineral stocks.

Debt recast buzz brings investors to Renuka

Shares of Shree Renuka Sugars rose 5% to . 89.10 on Monday amid speculation that a market operator, who shares his first name with the Union minister for agriculture , is a buyer. Total traded volumes on Monday were twice the two-week average . The company recently announced that it finalised debt restructuring terms with lenders of its Brazilian subsidiary Equipav amounting to over . 3,400 crore. Analysts had downgraded the stock when the company announced this acquisition earlier this year on concern about the impact of the borrowings for this buyout on its balance sheet. The buzz about this operator’s interest in the stock has surprised many in the market, as the stronger rupee against the dollar is expected to squeeze the company’s export earnings.

Contributed by Harish Rao & Nishanth Vasudevan