Shares of aluminium and copper maker Hindalco (NSE -5.79%) fell more than 7% in Monday’s trade as one of the biggest clients of subsidiary Novelis Corp cut its earnings outlook as the global economy continues to slow.

US beverage can maker Ball Corporation lowered its five-year sales growth forecast for North America due to sluggish demand. The company also highlighted that sales of beverage cans could weaken in the near term due to an impending recession in the US and falling aluminium prices.

According to brokerage firm Jefferies, the Ball Corporation is Novelis’ largest client. Ball Corporation’s lower sales guidance could impact Novelis’ earnings outlook in the coming quarters.

Ball Corporation has lowered its sales outlook for North America to 2-4% from 4-6% and for South America to 4-7% from 5-8%.

The stock was trading at Rs 375.80 at 12.15 pm, down 5.2% from the previous day’s close of Rs 396.40. The stock fell nearly 12% last week and is down about 41% over the past six months.

For the quarter that ended June 30, 2022, the company reported consolidated net sales of Rs 58,018 crore, an increase of 40.28% from the net sales of Rs 41,358 crore in the same period last year. The company reported a net profit of Rs 4,116 crore in the latest quarter.