Hindalco rallies over 6% as Alcoa Q3 beats estimates

MUMBAI: Aluminium major Hindalco rallied over 6 per cent on hopes of a strong quarter after Alcoa, world's third largest producer of aluminum, beat Q3 earnings estimates.

The company reported net profit of $149 million, against net profit of $24 million in the year-ago. Sales for the quarter increased to $6.2 billion from $5.7 billion in year-ago period.

Hindalco had recently come under selling pressure following de-allocation of coal blocks. According to BNP Paribas, the stock had over-reacted to the negative newsflow.

The brokerage has lowered its target price on the stock to Rs 208 but remains bullish on it.

“The stock has over-reacted to the news. We think this offers a good opportunity to add exposure for the potential recovery in the aluminium sector,” the report said.