Stock market analyst Rajat K Bose has suggested investors to sell Hindalco Industries stock as there are full chances of a downward trend in this stock.

The stock is trading weak after opening at Rs 128, against its last closure at Rs 129.65 on the Bombay Stock Exchange (BSE).

Stock analysts also suggested that if the stock fell below Rs 123, it may see more weakness. So the investors must sell the stock with a stop Loss above Rs 132.50 to achieve a target that lies between Rs 125 and Rs 122.

After selling the stock in today’s session, the interested investors can enter the stock again, but only on declines.

Shares of Hindalco Industries traded weak on Monday (Aug 18), which lost 2.69% at Rs 135.80 in its early session. The stock also touched its all time 52-week low, which is below 41.78% over the 52-week high of Rs 223.30.

Hindalco Industries expects to lift around $1.2 billion through rights offering by issuing additional shares after the stock market fall soured pricing.

The company needs this amount to replace a $3.03 billion bridge loan it had taken to acquire Canada`s Novelis in February 2007. The rest will be funded through debt and other instruments.

Hindalco intends to price the rights offering at Rs 96 per share, below early plans for over Rs 100, and make up the deficit by shifting the ratio to 3 rights for every 7 held from 1:3 proposed earlier.

For the three months period ended June 2008, the company announced a steady increase in its standalone net profit. During the quarter, the company’s net profit climbed 15.57% to Rs 6,967.60 million as compared to Rs 6,029 million during the same quarter, previous year.

The company registered earnings of Rs 5.68 per share during the quarter, registering 13.60% growth over previous year period.

Net sales declined marginally 0.65% to Rs 46,475 million, while total income for the quarter rose marginally 1.24% to Rs 48,621.90 million, when compared with the prior year period.