Vedanta Aluminium, Hindalco, and NALCO Shares Plummet as Aluminium Prices Retreat

Vedanta Aluminium, Hindalco, and NALCO shares plummeted up to 7% on Friday as aluminium prices retreated from a seven-week high.

The decline comes after Norwegian aluminium major Norsk Hydro ramped up production at its Brazilian refinery, Alunorte, following approval from Brazil's oil, natural gas, and biofuels regulator ANP to become a self-importer of gas.

NALCO was the worst hit, falling 7% to Rs 375 apiece. The company's shares had risen by as much as 8% during the previous trading session when Alunorte cut alumina production to 50% of its capacity due to a gas shortage.

Analysts believe that the ramp-up in production at Alunorte could add more alumina supply to the global market, potentially putting downward pressure on alumina prices.