Stock Tips: If Russia is a powerhouse in terms of commodities, then restrictions on it will affect aluminium, nickel, steel, thermal coal and PCI coal.
Stock Tips: Due to the conflict between Russia and Ukraine, supply chain problems have arisen around the world. If Russia is a powerhouse in terms of commodities, analysts at domestic brokerage firm Motilal Oswal believe that sanctions on Russia will affect aluminum, nickel, steel, thermal coal and PCI coal. Due to this, the brokerage firm believes that the share price of many domestic commodity companies may rise. Analysts at Motilal Oswal are bullish on Coal India, Hindalco and Nalco.
Investment Tips: Do not be afraid of attack on portfolio in Russia-Ukraine war, expert gave these special tips to investors
Advice on buying these stocks
- Hindalco: Buy- Hindalco will get maximum benefit from rising commodity prices. According to analysts, the ban on Russian aluminum will benefit Hindalco as it has a strong presence in both the up and down stream segments. In aluminium, the upstream segment means the mining of bauxite to aluminium, while the downstream segment means the finished product and its associated solutions. Motilal Oswal’s analysts have fixed a target price of Rs 700 per share for investing in it.
- NALCO: Buy- India’s National Aluminum Company (NALCO) is expected to benefit due to sanctions on Russia’s RUSAL, one of the world’s largest aluminum companies. According to experts, Nalco will benefit from its bauxite mine and business linkage for coal with Coal India. The company has been continuously paying dividend to the investors. According to analysts of Motilal Oswal, its shares can reach a price of Rs 184.
- Coal India: Buy- Germany has announced the resumption of some of its coal-fired coal power plants and the reopening of three nuclear plants scheduled to close this year. Due to this the prices of coal are increasing and Coal India can get the benefit of this. The brokerage firm has fixed a target price of Rs 245 per share for investment in Coal India.
Chip Shortage: Russia-Ukraine war may increase chip shortage, vehicles, mobiles are also likely to be expensive
Russia is like a commodity powerhouse
According to Motilal Oswal, Russia is a commodity powerhouse. Russia was the second largest producer of crude oil in the year 2020. It was the fourth largest producer of steel in the world. Russia is also a major producer of aluminum and nickel. Currently, Russia accounts for 9-10 per cent of the world’s exports of aluminum, 11-12 per cent of nickel, 20 per cent of thermal coal and 12 per cent of steel. In such a situation, due to sanctions on Russia, the prices of aluminum, nickel, steel, thermal coal and PCI coal can increase. Hindalco, Nalco and Vedanta in India and Coal India can benefit from the rise in the price of aluminum.
,Article: Kshitij Bhargava)
,The stock recommendations given in the story are from the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.
,