ET reported that shares of Sterlite Industries & Hindalco touched their 52 week low on Monday as copper prices extended losses today.

As per report, copper extended losses as fears of a Greek default stirred worries of a global recession which could slow industrial use, a scenario underlined by copper's sharpest weekly fall in nearly three years last week.

Shares of Sterlite Industries touched their 52 week low of INR 117.10 on the NSE and a high of INR 122.15. At 10:55 AM Sterlite Industries Limited was trading 4.4% lower at INR 117.25. Shares of Hindalco Industries Limited touched their 52 week low of INR 128.15 on the NSE and a high of INR 133. At 10:56 AM, Hindalco Industries Limited was trading 4.03% lower at INR 128.50.

Depreciating rupee also has a deep impact on copper prices as it helps in determining the landed cost of the red metal which is quoted in dollars. The partially convertible rupee was at 49.57 to 58 per dollar after dropping to 49.69 in early deals and 0.3 percent weaker than its close of 49.42/43 on Friday.

Morgan Stanley in a recent report on metals earlier this month downgraded Hindalco to 'SELL' from 'Overweight' with a price target of INR 126 and Sterlite Industries Limited to 'Equal weight' or 'Hold' call from 'Overweight' with a price target of INR 147. Heightened fears of a recession in developed markets and slower growth in emerging markets have given persistent high inflation. We reduce our forecast on aluminium, zinc and copper for F2012 to 2014 by 5% to 15%. The brokerage also trims F2012 to 2014 earnings forecasts for Sterlite and Hindalco by 15% to 33%.

Further, Hindalco Industries and Sterlite's competitive edge is being blunted due to increased cost and issues over the availability of coal and bauxite resulting from the policy impasse. Higher downside risk to aluminium prices, likely project delays and rising coal crunch also imply Hindalco may have further downside.

(Sourced from Economic Times)