HINDALCO NEWZ.

AFTER underperforming its Sensex and Nifty peers for more than a year, shares of aluminium major Hindalco appear to be gradually regaining favour with investors. The stock, which closed at Rs 197.20 on Tuesday, has risen 10% over the past one week and 14% over the past one month. In comparison, the Sensex has fallen 2% and 4%, respectively, during the same period. Thegrapevine has it that the ‘Silent operator’ has recommended his inner circle of high net-worth clients to start accumulating the stock. In fact, he is said to be so bullish on the stock that he has advised them to switch from Reliance Industries (a perennial favourite with Silent) to Hindalco. But he has also cautioned his acolytes not to expect huge returns immediately and be patient. Such bullishness on Hindalco at a time when the direction of the overall market seems uncertain, suggests that the Silent Operator may be on to something. For the moment, the stock does not figure high up on the rankings of most brokerages. Earlier this month, brokerage house Goldman Sachs downgraded its rating on the stock from neutral to sell, and slashed its price target by 13% to Rs 154. A tight copper concentrate market and no contribution to earnings growth from Novelis have been cited as the reasons for the downgrade.