The shares saw their sharpest intraday fall in nearly four years to test a three-month low before closing at 510.1 on the NSE, down 12.4% from its previous close.
The stock is seen weak in the near term, said Rajesh Palviya, head of technical and derivatives research at Axis Securities. The shares have broken their 50- and 100-day moving averages, and if it remains below 525, the shares could move towards 480, he said.
US-based Novelis — a subsidiary of the company –– will spend $4.1 billion on the integrated rolling and recycling plant to be set up in Bay Minette in the US, significantly higher from the previously announced $2.7-$2.8 billion. The company has also cut down the returns expected to ‘double digits’ from ‘mid-teens’ earlier given the higher capital costs, while delaying the commissioning of the plant by a year to second half of 2026.
Even though earnings will be impacted in the long run, most analysts have not downgraded Hindalco as they believe that Novelis will be able to sustain and improve its operating profit from around $525 per tonne.
(You can now subscribe to our ETMarkets WhatsApp channel)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price