Market Movers: What lit the fire in aluminum stocks

In the international market, metal prices crossed $3,200 a tonne. Prices have risen 14 per cent year-to-date amid concerns that the supply-demand gap could lead to a tight market for aluminium in the current calendar. The rising metal prices also seem to be puncturing theories that claimed the metal supercycle was over.

Shares of National Aluminium closed up 5 per cent and Hindalco Industries gained 3 per cent. The rising metal prices will result in these companies seeking price hikes. But, it will also put further pressure on policymakers who are already dealing with rising inflation.

Flying high

As most states are easing Covid-19 restrictions, shares of some airline companies have also started surging higher, anticipating recovery of passenger traffic and a quicker path to normalisation.

In January, domestic passenger traffic had plunged about 43 per cent as many states enacted curbs. Fliers also avoided travelling as Omicron cases surged in India. The declining traffic had induced volatility in shares of airline companies.

In the last four days, Interglobe Aviation, which runs the country’s largest airline IndiGo, gained over 16 per cent. SpiceJet, which is battling an insolvency petition in courts, remained flat during the same period.

Roller coaster ride

The roller coaster ride for Tata Teleservices continued for another day. After hitting the upper circuit for five straight sessions following the cancellation of plans to allocate equity to the government, it fell 5 per cent as the company widened its losses in the December quarter.

The stock grabbed attention last year amid a secular rally of over 3,000 per cent on rumours of its involvement in Tata’s super app. But after the company conveyed plans to convert statutory debt to equities, the stock crashed 51 per cent within 20 days.

There have been no comments from the company on the abovementioned rumours, and the super app also hasn’t seen the light of the day.

Some analysts believe the stock is being played by some market players and advise staying away from the counter.