Hindalco Shares Surge Amid Middle East Aluminium Supply Disruptions

NEW DELHI (Azat TV) – Shares of Hindalco Industries experienced a significant rally on Thursday, March 5, 2026, gaining nearly 7 percent as global aluminium prices surged following intensified supply disruptions in the Middle East. The rise positioned Hindalco as a top performer within the Nifty 50 and the Nifty Metal Index, which itself climbed over 3 percent during the trading session.

The surge in aluminium prices and subsequent boost to metal stocks were directly attributed to escalating geopolitical tensions in the Middle East. Specifically, the Qatari smelter Qatalum announced a shutdown, and its shareholder Norsk Hydro issued a force majeure to customers, signaling a halt in production. This development came shortly after QatarEnergy, a major stakeholder, reported suspending liquefied natural gas (LNG) production due to Iranian drone attacks. Further exacerbating supply concerns are ongoing shipping disruptions through the Strait of Hormuz, a critical global chokepoint for maritime trade and energy supplies, which affects a region that contributes a substantial portion of the world’s aluminium output.

Hindalco Leads Metal Sector Gains

Hindalco Industries, the metals flagship company of the Aditya Birla Group and one of Asia’s largest primary aluminium producers outside China, saw its stock open about 1 percent higher at ₹930. It quickly touched an intraday high of ₹983.50, marking a 6.7 percent increase. By midday, Hindalco shares were trading approximately 5.3 percent higher at ₹970, with about 8.3 million shares changing hands at an average traded price of ₹968.7 apiece. The company’s strong performance mirrored broader gains in the Nifty Metal Index, which was up 1.9 percent, making it the best-performing sectoral index. Other major metal players like National Aluminium Company (NALCO) also saw their shares rise by more than 5 percent to ₹393, while Vedanta jumped over 4.5 percent.

Global Aluminium Prices React to Middle East Crisis

The immediate catalyst for the stock market rally was the sharp increase in aluminium prices. On the Multi Commodity Exchange (MCX), the price of aluminium for April delivery rose by ₹4.90, or 1.47 percent, to ₹338.50 per kilogram in futures trade, reflecting fresh speculative positions amid a positive trend in the spot market. This global price hike was a direct consequence of the escalating crisis in the Middle East, including the US-Iran war and its impact on vital energy and commodity infrastructure. The suspension of LNG production and the Qatalum smelter shutdown directly reduced global aluminium supply expectations, creating upward pressure on prices.

Analysts Bullish on Hindalco’s Trajectory

Market analysts expressed a bullish outlook on Hindalco’s stock following the rally. Nilesh Jain, VP and head of derivatives and technical research at Centrum Broking, noted that Hindalco’s rally was consistent with the strong movement across the aluminium sector. He highlighted that the stock is trading above all key moving averages, indicating a bullish trend. Jain pointed out that Hindalco had achieved a breakout above ₹935 during Thursday’s session, supported by higher trading volumes and a long build-up in derivatives. He projected potential upside for Hindalco to ₹1,020 – ₹1,030, suggesting it could even reach a fresh record high and be considered a ‘buy on decline candidate.’

Amol Athawale, VP technical research at Kotak Securities, echoed a similar sentiment. He observed that after a short-term correction, Hindalco’s stock had formed a positive reversal pattern on both daily and weekly charts. Athawale advised positional traders to consider ₹935 as an important support level, asserting that the uptrend is likely to continue as long as the stock remains above this mark. He further suggested that Hindalco could move towards the ₹1,035 – ₹1,045 zone on the upside, though a move below ₹935 would make the uptrend vulnerable.

The significant rally in Hindalco’s shares underscores the immediate and tangible impact of geopolitical events on global commodity markets and, by extension, the performance of major industrial players. The Middle East crisis, particularly its effect on critical supply chains and production facilities, has swiftly translated into heightened investor confidence in companies positioned to benefit from rising commodity prices, highlighting the intricate link between global stability and market dynamics.