Key Events This Week
2 Feb: Intraday high of Rs.937.25 with 3.24% surge
2 Feb: Valuation turns attractive amid market volatility
3 Feb: Intraday high of Rs.965.50 with 3.07% surge
5 Feb: Intraday low of Rs.924.35 amid price pressure
2 February 2026: Intraday High and Valuation Shift
Hindalco Industries Ltd began the week with a strong intraday performance, surging 3.24% to reach a high of Rs.937.25. This marked a reversal after two prior days of decline and outpaced the Sensex’s 1.03% drop on the same day, signalling renewed buying interest. The Aluminium & Aluminium Products sector also advanced by 3.26%, providing a supportive backdrop for the stock’s momentum.
Despite the intraday strength, the stock closed lower at Rs.932.15, down 3.11% from the previous close, reflecting volatility and profit-taking. Notably, valuation metrics improved significantly this day, with the price-to-earnings ratio contracting to 11.38 and price-to-book value at 1.51, indicating an attractive entry point relative to historical averages and sector peers. The enterprise value to EBITDA ratio of 7.62 further underscored the stock’s affordability amid market fluctuations.
These valuation shifts came amid a 5.66% one-day price decline intraday, highlighting the tension between fundamental appeal and short-term market pressures. Hindalco’s return on capital employed (13.55%) and return on equity (13.29%) remain solid, supporting the case for medium-term value despite near-term volatility.
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3 February 2026: Continued Intraday Gains Amid Market Volatility
The stock rebounded on 3 February, registering a 3.07% intraday surge to a high of Rs.965.50, closing at Rs.955.30, up 2.48% on the day. This marked a two-day consecutive gain streak, with cumulative appreciation of 5.84%. Hindalco outperformed the Non-Ferrous Metals sector by 1.22%, demonstrating relative strength despite a volatile market where the Sensex declined 2.95%.
Technically, the stock remained above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained medium- to long-term strength. However, it traded slightly below its 5-day moving average, indicating short-term consolidation. The stock’s ability to maintain upward momentum amid a broader market pullback highlighted its resilience within the sector.
Longer-term performance metrics remain robust, with year-to-date gains of 8.23% versus the Sensex’s 1.33% decline, and impressive returns over three, five, and ten-year horizons. The Mojo Score remained steady at 78.0 with a Buy grade, reflecting a positive but moderated outlook compared to the previous Strong Buy rating.
4 February 2026: Modest Gains and Consolidation
On 4 February, Hindalco continued its upward trajectory with a 0.92% gain, closing at Rs.964.05. The Sensex also advanced modestly by 0.37%, closing at 36,890.21. Trading volume was lower compared to previous days, suggesting a phase of consolidation after the prior strong rallies. The stock’s position above key moving averages remained intact, supporting the medium-term bullish trend.
5 February 2026: Intraday Low and Price Pressure
Hindalco faced significant selling pressure on 5 February, with the stock declining 3.02% to close at Rs.934.90 and hitting an intraday low of Rs.924.35. This represented a 4.12% drop from the previous close, exceeding the Sensex’s 0.53% decline. The stock underperformed its sector by 0.9%, reflecting short-term weakness amid broader market caution.
Technical indicators showed the stock trading below its 5-day and 20-day moving averages, signalling immediate selling pressure despite remaining above longer-term averages. Intraday volatility was elevated, with a weighted average price volatility of 212.45%, underscoring the unsettled trading environment.
This price action followed three consecutive days of gains, suggesting profit-taking and market hesitation. The Sensex’s modest retreat and technical positioning further contributed to a cautious sentiment among investors.
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6 February 2026: Minor Recovery Amid Mixed Market
The week closed with a modest recovery on 6 February, as Hindalco gained 0.81% to Rs.942.45. The Sensex also edged up 0.10%, closing at 36,730.20. Trading volume was moderate, and the stock remained below its short-term moving averages, indicating ongoing consolidation. This slight rebound followed the prior day’s sharp decline, suggesting some stabilisation but continued caution among traders.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.932.15 | -3.11% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.955.30 | +2.48% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.964.05 | +0.92% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.934.90 | -3.02% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.942.45 | +0.81% | 36,730.20 | +0.10% |
Key Takeaways
Hindalco Industries Ltd’s week was characterised by significant intraday volatility and a divergence from the broader market’s positive trend. Early-week gains driven by sector strength and improved valuation metrics were offset by midweek profit-taking and technical selling pressure.
The stock’s valuation has become more attractive, with P/E and P/BV ratios contracting to levels appealing to value investors. However, short-term technical indicators suggest caution, as the stock traded below its 5-day and 20-day moving averages during the latter part of the week.
Despite the weekly decline of 2.04%, Hindalco’s longer-term performance remains robust, with substantial outperformance versus the Sensex over one, three, five, and ten-year periods. The Mojo Score of 75.0 and Buy rating reflect a positive fundamental outlook tempered by recent market volatility.
Investors should note the heightened intraday volatility and sector sensitivity, which may continue to influence price action in the near term. The stock’s position above longer-term moving averages provides some support, but short-term consolidation appears likely.
Conclusion
Hindalco Industries Ltd’s trading week ending 6 February 2026 encapsulated a complex interplay of valuation appeal, sector momentum, and technical fluctuations. While the stock demonstrated resilience with intraday highs and relative strength within its sector, it ultimately closed the week lower amid profit-taking and market caution.
The improved valuation metrics and solid long-term returns underscore Hindalco’s enduring market presence and fundamental strength. However, the short-term price pressure and divergence from the Sensex’s gains highlight the challenges of navigating current market conditions.
Overall, the week’s developments provide a nuanced picture of Hindalco’s position, balancing attractive valuation against near-term volatility and technical resistance. Market participants will likely monitor these dynamics closely in the coming sessions.
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