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Metals Shine, Hindalco Surges To New Year High

Metals Shine, Hindalco Surges To New Year High

Shares in Hindalco Industries on Tuesday surged 7.3 per cent to a new year high of Rs 176.25  after upbeat China manufacturing data sparked hopes of recovery in the metal sector.

China's factory growth rose to a six-month high of 51 in June on improving domestic and foreign demand, adding to signs that the economy is regaining strength after an unsteady start to 2014.

Analyst say a recovery in China's factory growth may work as a catalyst for the metal sector in India as it will help in improving exports of metal companies.

In another boost for Hindalco, CLSA has also upgraded Hindalco to 'buy' from 'sell'. The brokerage believes Hindalco shares can become double in four years. CLSA says aluminium demand from auto companies is at an inflection point and Hindalco's attempt to de-leverage its balance sheet in last few years will boost its equity value.

As of 10.00 a.m., shares in Hindalco traded 6.94 per cent higher at Rs 175.6 compared to 0.37 gain in Nifty. Other metal stocks like Tata Steel, Sesa Sterlite and Jindal Steel & Power were also up between 2 to 3 per cent.

(With inputs from Reuters)