NALCO Hits 52-Week High Amid Market Weakness: Here’s Why the Stock Is Rallying

Even as the broader equity market witnessed a decline, shares of National Aluminium Company Limited (NALCO) surged to a fresh 52-week high on Wednesday. The stock has gained nearly 14% over the last four trading sessions, reflecting strong investor confidence in the state-owned Navratna company.

On the BSE, NALCO shares rose up to 3% to touch ₹357.50, marking their highest level in a year. The sharp rally comes at a time when global aluminium prices have climbed to multi-year highs, significantly improving the outlook for aluminium producers.

Global Aluminium Prices Drive Optimism

The primary catalyst behind the rally is the sharp rise in aluminium prices in the international market. Aluminium prices on the London Metal Exchange (LME) have crossed the $3,000 per tonne mark for the first time in over three years and are currently trading around $3,082 per tonne.

This surge is largely attributed to supply constraints. Restrictions on aluminium smelting capacity in China, coupled with high power costs in Europe, have disrupted global production and tightened inventories. At the same time, demand from key sectors such as construction, renewable energy, electric vehicles (EVs), power infrastructure, and data centres remains robust.

According to a Bloomberg report, the gap between global demand and supply of aluminium is expected to widen further, supporting prices in the near to medium term.

Strong Financial Performance

NALCO’s improving fundamentals have further strengthened investor sentiment. In the September quarter, the company reported a 36.7% year-on-year increase in net profit to ₹1,430 crore, compared to ₹1,046 crore in the corresponding period last year. Revenue also rose 31.5% year-on-year to ₹4,292 crore from ₹4,001 crore.

Brokerage firm Axis Securities highlighted that the timely expansion and commissioning of NALCO’s fifth alumina refinery will be a key growth driver. The company plans to increase its alumina refining capacity by 1 million tonnes per annum (MTPA) by FY27.

Outlook and Technical Indicators

From a long-term perspective, NALCO’s stock performance has been impressive. The share delivered nearly 50% returns in 2025 and has already gained about 11% so far in 2026.

Technically, the stock is trading above all major simple moving averages (from 5-day to 200-day SMA), indicating strong bullish momentum. However, the Relative Strength Index (RSI) stands at 85.5, suggesting the stock is in an overbought zone and may witness some consolidation in the short term.

Overall, strong global aluminium prices, improving demand prospects, solid financial performance, and capacity expansion plans have combined to propel NALCO shares to new highs despite weakness in the broader market.