Hindalco hits a new 52-week low

Hindalco Industries hit a new low today at Rs.97.60. Though it has recouped a bit, it remains down in the red, a dip of over 4.5%.

The stock is reacting to two issues – the loss of Novelis and devaluation of Yuan. Its overseas subsidiary Novelis reported weak set of numbers for quarter ended 30^th June 2015. It reported a net loss of $60 million and revenue was marginally lower by 2% at $2.6 billion v/s $2.7 billion in previous quarter last fiscal. The market is also perturbed with the Chinese currency devaluation which will make exports from China cheaper while imports to China will get more expensive.  This does not bode well for the Indian metal industry and Hindalco is one of the companies which could get affected.