Equity Alert
Emkay bullish on metal cos as prices recover from tariff-shock
This story was originally published at 08:42 IST on 15 September 2025
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Equity Alert: Emkay bullish on metal cos as prices recover from tariff-shock
MUMBAI--0816 IST--Emkay Global Financial Services retained its positive view on the metal sector companies, with aluminium prices climbing back to $2,700 a tonne in recent weeks, from the low of $2,275 per tonne it hit in April due to tariff-related shocks. Current aluminium prices are also in tandem with the brokerage's six-month target.
The recent rise in aluminium prices is on the back of global cyclical recovery with the expected rate cut by the US Federal Reserve this month, Emkay said. Globally, primary aluminium's supply and demand balance remains tight with capacity utilisation at 98%, the brokerage said. Meanwhile, zinc prices have steadied at higher levels of $2,800-$2,900 per tonne even as demand and supply are in surplus, and silver is also gaining momentum, it said.
The brokerage also said it sees Vedanta benefitting the most from the current scenario of rising aluminium, zinc, and silver prices, alongside falling alumina prices. The company derives about 80% of earnings before interest, tax, depreciation, and amortisation from aluminium, zinc, and silver. In addition, spread expansion from rising aluminium and falling alumina prices plays in favour due to Vedanta's net-short alumina exposure. The brokerage has a 'buy' rating on the stock with a target price of INR 525, which has an upside of 16%.
Hindalco Industries, on which Emkay has a 'reduce' rating, also derives about half of its EBITDA from the aluminium business, benefitting from the ongoing trend. National Aluminium Co. sees 60?ITDA from aluminium and 40% from alumina, Emkay said. The brokerage has a 'buy' rating on the stock with a target price of INR 210. Hindustan Zinc, which is not rated by Emkay, is also a key beneficiary of rising zinc and silver prices. (Gopika Balasubramanium)
Equity Alert: US indices mixed Fri; traders await Fed meet outcome
MUMBAI--0742 IST--Indices in the US were mixed Friday. The S&P 500 and the Dow Jones Industrial Average ended lower while the technology-heavy Nasdaq Composite closed at a record high. All three indices had hit record closing highs in the previous week as market participants expect the US Federal Reserve to cut interest rates in its meeting on Wednesday.
The Nasdaq Composite rose for the fifth consecutive session, up 0.4%. The index had gained more than 2% in the previous week. Shares of Tesla and other technology companies pushed the index higher. Tesla was up 7?ter its board Chair Robyn Denholm dismissed concerns that Chief Executive Officer Elon Musk's political activity had hurt sales, Reuters reported.
Shares of Warner Bros Discovery rose 17%, extending gains from Wednesday when media reports suggested Paramount Skydance was preparing to bid for the company. Shares of technology-giant Microsoft rose 2?ter the company avoided paying a potentially large anti-trust fine in European Union.
The Dow Jones fell 0.6?ter hitting a closing high Thursday. Shares of paint-maker Sherwin-Williams Co. were down 2% and Goldman Sachs fell nearly 1%.
The S&P 500 fell marginally, snapping a four-day winning streak. The index had hit a record intraday high Friday before retreating to close at lower levels.
Shares of vaccine makers were down after a media report said that US health officials were planning to link coronavirus vaccines to the deaths of 25 children, according to Reuters. Shares of Modern, Pfizer, Novax fell 3-7%.
Traders await the US Federal Reserve's policy on interest rate cuts as several analysts believe a September rate cut will mark the start of a new easing cycle, according to media reports. The CME Fedwatch tool shows a 96% probability of a 25-basis points rate cut, up from an 89% possibility a week ago.
Following were the closing level of US indices Friday:
|
Index |
Level |
Change in % |
|
S&P 500 |
6584.29 |
(-)0.05 |
|
NASDAQ Composite |
22141.1 |
0.44 |
|
Dow Jones Industrial Average |
45834.22 |
(-)0.59 |
(Eshitva Prakash)
US$1 = 88.28
End
Edited by Akul Nishant Akhoury
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