Aluminium Margin Powers Hindalco Industries
- 21st May 2025
Aaj Ka Bazaar
In the previous session on May 20, Indian equity benchmarks extended their decline for the third straight day, dragged down by weak global cues and persistent selling by foreign institutional investors (FIIs). Globally, Wall Street paused its recent rally, with the S&P 500 snapping a six-session winning streak and all three major U.S. indices ending in the red. The Dow Jones slipped 0.27%, while the Nasdaq Composite and S&P 500 fell 0.4%, pressured by rising U.S. Treasury yields amid renewed concerns over the country’s sovereign debt profile. In Asia, however, sentiment remained upbeat as indices in Australia, South Korea, and Hong Kong advanced, supported by China’s central bank cutting key lending rates for the first time in seven months to stimulate growth. The KOSPI rallied nearly 1%, and the Hang Seng gained around 0.5%, further bolstered by Chinese state banks lowering deposit rates to ease margin pressures. Despite this, Indian markets are expected to open on a muted note today, as suggested by GIFT Nifty, with global trade uncertainties, continued FII offloading, and some lacklustre earnings season likely to dampen investor sentiment. On the stock-specific front, shares of IRCON are expected to be in focus after the company secured a Rs 253.56 crore work order from South Western Railway for the installation and commissioning of KAVACH safety systems across 778 route kilometres in the Bengaluru and Mysuru divisions.
Markets Around Us
BSE Sensex – 81,392.77 (0.25%)
Nifty 50 – 24,770.80 (0.36%)
Bank Nifty – 55,021.70 (0.26%)
Dow Jones – 42,586.03 (-0.21%)
Nasdaq – 19,142.10 (-0.52%)
FTSE – 8,781.12 (0.93%)
Nikkei 225 – 37,434.96 (-0.25%)
Hang Seng – 23,797.37 (0.49%)
Sector: Metal & Mining
Hindalco Industries Q4 Result
Hindalco Industries has delivered a stellar performance, reporting record-high performance across parameters, supported by margin expansion and disciplined cost control. The company’s strong operational execution, particularly in its Indian Aluminium Upstream business, coupled with lower input costs and favourable macro tailwinds, underscores its robust fundamentals. The Aluminium Upstream segment remains the key growth driver, delivering an EBITDA margin of 47% in Q4 – a clear reflection of strong cost control and operational efficiency. Going forward, despite a moderating global growth backdrop and potential external risks, Hindalco’s strategic positioning appears robust. Its robust exposure to high-growth and structurally positive sectors such as beverage can packaging, automobile and consumer durables, coupled with capacity expansions, cost optimisation measures and product mix optimisation, should support volume and margin growth.
Why it Matters:
Hindalco’s record-breaking Q4 performance highlights its strong operational efficiency, especially in the Aluminium Upstream segment with a standout 47% EBITDA margin. Lower input costs and strategic cost control have strengthened its financial resilience. With exposure to high-growth sectors and ongoing capacity expansions, Hindalco is well-positioned for sustained volume and margin growth despite global uncertainties.
NIFTY 50 GAINERS
BEL – 376.65 (3.53%)
SUNPHARMA – 1750.00 (2.47%)
DRREDDY– 1246.80 (1.85%)
NIFTY 50 LOSERS
SHRIRAMFIN – 644.60 (-2.09%)
INDUSINDBK – 775.45 (-0.87%)
HINDALCO – 657.10 (-0.85)
Sector : IT Software
Unicommerce eSolutions Ltd on Tuesday, May 20, said it is partnering with digital healthcare company Tata 1mg to offer order processing and logistics services. Through the platform’s technology, Tata 1mg will automate its brand’s order processing, which will help in tracking stock levels accurately, while utilising demand forecasting to minimise overstocking. Such practices will lead to the assurance of timely product availability across facilities, along with an error-free fulfilment of products across Tata 1mg’s over 1,000 cities in India. The digital healthcare company has made use of Unicommerce’s multi-channel order management and warehouse management systems to streamline the company’s backend operations for the orders received on its website and across various marketplaces, it said. Unicommerce’s batching facility will enable quick identification of faulty and expired products, triggering actions like initiating recall or prioritising sales by generating alerts for a batch nearing its expiry date, the company said.
Why it Matters:
This partnership enhances Tata 1mg’s backend efficiency, ensuring faster, error-free order fulfilment across 1,000+ cities in India. By leveraging Unicommerce’s tech for inventory tracking and demand forecasting, Tata 1mg can reduce overstocking and ensure better product availability. It also strengthens safety compliance through automated batch alerts for expired or faulty products.
Around the World
Asian currencies rose on Wednesday as the U.S. dollar weakened due to uncertainty around President Trump’s proposed tax cut bill and investor caution during the G7 finance ministers’ meeting. Traders are watching closely, as any policy shift could impact forex markets. The U.S. Dollar Index dropped, reflecting concerns over growing fiscal deficits and a recent U.S. credit rating downgrade by Moody’s. Meanwhile, Asian markets reacted to Japan’s weak trade data, which showed a slowdown in exports due to U.S. tariffs. Despite this, currencies like the South Korean won, Japanese yen, and Australian dollar gained. The Chinese yuan stayed steady even as tensions flared over U.S. restrictions on Huawei chips. The Indian rupee remained flat. Overall, a softer dollar and trade-related worries are driving short-term strength in Asian currencies, while global uncertainties around inflation, interest rates, and U.S.-China relations continue to shape market sentiment.
Option Traders Corner
Max Pain
Nifty 50 – 24800
Bank Nifty – 55000
Nifty 50 – 24787 (Pivot)
Support – 24,565, 24,447, 24,224
Resistance – 24,906, 25,128, 25,246
Bank Nifty – 55091 (Pivot)
Support – 54,615, 54,352, 53,876
Resistance – 55,353, 55,830, 56,092
Have you checked our latest YouTube Video
Did you know?
India’s Retail Investor Surge: Market Participation Hits Record Highs in 2024
India’s stock market has seen a 36% rise in retail participation, with over 50 million investors active by 2024. This surge is driven by increased financial literacy, digital trading platforms, and government initiatives. Systematic Investment Plans (SIPs) have also gained popularity, with monthly contributions hitting ₹14,000 crore in early 2025. These trends reflect growing confidence in India’s equity markets.
