Hindalco Industries share prices, which have been declining since Monday, faced heavy selling pressure on Thursday, plunging over 7 % in early trading on the BSE. The Birla Group stock opened at 716.95 against its previous close of 717.45 and fell as much as 7.1% to the level of 666.80. The stock, however, pared losses. Around 01:05 pm, it traded 4.5 percent down at ₹685.05. Equity benchmark Sensex was down 0.03 percent at 80,058 at that time. Experts attribute the fresh fall in the stock to Constellium’s earnings report. Constellium is a major global company that produces and recycles aluminum products. Shares of Constellium crashed 28 percent overnight after it reported the results.
Media reports suggested that the Paris-based company reported below-expected third-quarter profit and revenue due to weakening demand and the impact of flooding on its Swiss facilities.
Experts pointed out that Constellium’s earnings report acts as a benchmark for assessing industry health. “Standalone revenue is forecasted to remain largely flat YoY but decline 8.1 percent QoQ impacted by sequentially lower aluminum and copper prices. EBITDA would improve 39.1 percent YoY to ₹2,450 crores aided by lower input commodity costs and improved operations,” Antique said.
Brokerage firm Motilal Oswal Financial Services expects a 5.1 percent YoY rise in net sales and a 45.4 percent YoY jump in adjusted PAT. Â
According to Hardik Matalia, a derivatives analyst at Choice Broking, the stock currently trades between ₹685 and ₹690, and the chart has formed a double-top pattern, indicating potential bearishness in the short term.
“The stock has broken below a key support level near ₹715, which is now expected to act as resistance. This breakdown also confirms a loss in the pattern of higher highs and lower lows, signaling a short-term trend reversal.
