Top Weekly Gainers: Hindalco, Grasim, SBI Lead as Earnings, Legal Relief Lift Stocks 

Mumbai, August 9: Shares of Hindalco Industries, Grasim Industries, State Bank of India (SBI) and Shriram Finance emerged among the top weekly gainers, rising between 6.5% and 8.7% in the week gone by. The gains were driven by a combination of strong quarterly earnings, firmer metal prices, favourable legal developments and optimism around loan growth, even as investors remained watchful. 

Hindalco: Shares rose 8.74% in the week gone by to Rs 1,060, clocking a market cap of Rs 2,38,116 crore. 

Hindalco Industries emerged as the biggest weekly gainer among major Nifty stocks, with the metal producer drawing support from a sharp jump in first-quarter profit and firmer aluminium prices. The stock’s gains came after the Aditya Birla Group company reported a 75.1% year-on-year rise in consolidated net profit to ₹7,013 crore for the quarter ended June 30, while revenue from operations increased 32.1% to ₹84,825 crore. 

The strong performance was helped by a sharp improvement in metal prices, with aluminium prices rising about 45% year-on-year during the quarter. Hindalco’s India aluminium upstream business grew 44%, while downstream operations expanded 46%, supported by strong automotive demand. Its copper business also grew 16%. 

Another key positive was the recovery at Novelis, Hindalco’s aluminium products subsidiary, which contributes more than 60% of the group’s revenue. Novelis restarted operations at its Oswego, New York, plant in early June following fire-related disruptions, supporting a 35.7% increase in its revenue during the quarter. 

Looking ahead, however, the earnings momentum could face some moderation. Managing Director Satish Pai said Hindalco expects average aluminium prices in the second quarter to be around $250 per tonne lower than in the first quarter. At the same time, the company expects costs to peak during the second quarter after total expenses rose 25.4% in the June quarter, with raw-material costs climbing 37%. 

The company nevertheless expects domestic demand for aluminium and copper to grow 7-8% during the current fiscal year, providing a supportive backdrop for its India operations. 

For investors, the key near-term monitorables will therefore be global aluminium prices, Novelis’ recovery, input-cost trends and domestic auto and infrastructure demand. While softer aluminium prices could temper sequential earnings growth, the combination of healthy domestic demand and improving Novelis operations could keep Hindalco’s outlook constructive.  

Grasim Industries: Shares rose 7.17% in the week gone by to Rs 3,323, clocking a market cap of Rs 2,26,157 crore. 

Grasim Industries was among the top weekly gainers, with the stock benefiting from a favourable legal development a week ago as the Supreme Court upheld an order setting aside a ₹301.6-crore penalty imposed by the Competition Commission of India (CCI) on the Aditya Birla Group company. 

The Supreme Court on July 31 dismissed the CCI’s challenge against the National Company Law Appellate Tribunal (NCLAT) order, which had quashed the penalty imposed on Grasim over alleged abuse of dominance in the viscose staple fibre (VSF) market. 

The CCI had alleged that Grasim abused its dominant position. The NCLAT, however, found that the regulator had departed from the findings of its investigation arm without giving Grasim an opportunity to respond. 

The Supreme Court’s decision removes an immediate financial and regulatory overhang, although the matter is not completely closed as the CCI has been directed to reconsider the case. 

Looking ahead, the legal relief could remain a near-term positive for Grasim’s stock. 

SBI: Shares rose 6.79% in the week gone by to Rs 1,097, clocking a market cap of Rs 10,12,783 crore. 

State Bank of India (SBI) shares ended up among top weekly gainers after the country’s largest lender reported a better-than-expected 10.2% year-on-year increase in June-quarter net profit to ₹21,121 crore, helped by robust loan growth. 

SBI’s gross loan book grew 18.63% year-on-year, while deposits increased 9.73%. Net interest income rose nearly 15% to ₹46,992 crore. Asset quality also strengthened, with gross non-performing assets declining to 1.47%.  

The strong loan growth is particularly significant as Indian banks continue to navigate competition for deposits and pressure on funding costs. SBI also mobilised $6 billion in FCNR-B deposits aided by the RBI’s concessional swap facility and is targeting $10 billion, providing additional support to its funding position.  

Looking ahead, investors will closely watch whether SBI can sustain loan growth. 

For the stock, the combination of strong credit growth, improving asset quality and better-than-expected profitability provides a positive near-term backdrop. 

Shriram Finance: Shares rose 6.53% in the week gone by to Rs 1,115, clocking a market cap of Rs 2,62,350 crore. 

Shriram Finance was among the notable weekly gainers.  

The company also raised $1.32 billion through foreign borrowings in June, highlighting its access to overseas funding markets.  

The stock’s gains come after its quarterly results were announced two weeks earlier, meaning the recent move is less about a fresh earnings catalyst and more about expectations around funding access and loan growth. 

Looking ahead, investors are likely to monitor AUM growth, disbursements, asset quality and borrowing costs. 

Source

• NSE