Stay invested in Hindalco

Rajesh Jain of Pranav Securities of the view that investors should stay invested in Hindalco.

Jain told CNBC-TV18, "Hindalco is a star in the Birla camp and I would be very surprised that they would leave it so susceptible to a hostile takeover for anything. But yes this market has seen Hindalco not really participate in a big way in the entire upmove and hence any news like that would have really garner into action all these people who are tiring of this stock, not surprising because of the lack of participation in the upmove. But aside of that to answer the investors question I think the company is on a very firm wicket fundamentally, realisations have been very good in the copper segment."

He further added, "They have acquired Novelis; as a result of which they have got on their client list several Fortune 500 names like GE and the rest. My own call is that despite the lack of momentum performance on the counter, this is a stock which you must hold because aluminium is in the same league as steel as far as growing economy is concerned and investors would do well to be with an integrated player like Hindalco which is the best exposure to the Indian aluminium sector."