Hindalco, NALCO, Hindustan Zinc trade at 52-week highs

Aluminium stocks were trading at fresh 52-week highs as base metal prices rebounded from their lows to hit new highs, leading to shares of metal companies trading higher.

Prices of aluminium were currently trading at a two-year high, which in turn has helped both Hindalco and NALCO, both of which are big producers of aluminium in the country, to hit fresh highs. Hindalco hit a new high of Rs 184.80 and NALCO hitting a high of Rs 73.15

Aluminium producers have seen a sharp run up in their share prices due to the rising aluminium prices, which are expected to improve realisations and aid in improving margins further.

With the worst seemingly behind, the prices of zinc, aluminium and other base metals have significantly rebounded from their 2016 lows, and manufacturers are benefiting immensely. Importantly, according to analysts' expectations, further increase in zinc and iron ore prices is expected, and they also expect aluminium prices to remain firm in the coming months.

The BSE Metal index has also been one of the star performers of the year, giving returns of more than 47 per cent on a YTD basis.