Hindustan Copper shares jumped as much as 17.7% on Thursday to Rs 721 on the BSE, extending a sharp advance that began last week. The stock has climbed from a closing level of Rs 531.80 on Jan 22, rising 5% on Tuesday and 12.5% on Wednesday, as momentum accelerated across the metals space.
Global copper rally lights the fuse
The immediate catalyst has been a renewed surge in global copper prices, which hit record levels amid geopolitical tensions, trade uncertainty and a weakening dollar.“Copper rallies to an all time high,” said Jigar Trivedi, Senior Research Analyst at Indusind Securities. “Copper futures surged 5% to above $6.2/pound, hitting record highs on rising demand for real assets as geopolitical and trade uncertainties and a sudden drop in the dollar unnerved investors.”
Trivedi pointed to heightened geopolitical risk as a key driver. “In recent developments, U.S. President Donald Trump threatened Iran with military strikes far more severe than the attack he ordered in June unless the country agrees to a trade deal with Washington. Trump’s tariff threats against other nations, coupled with his apparent indifference to the dollar’s weakness, further fueled the flight to metals.”
He said that fundamentals remain supportive. “Copper is also being supported by recurring supply tightness and robust industrial demand, particularly driven by the global transition to renewable energy and artificial intelligence. Meanwhile, copper inventories in Shanghai, London, and New York have risen in recent weeks, pushing combined holdings above 900,000 tons. MCX Copper February futures is likely to appreciate to Rs 1,470 a kg in tandem with the positive global trends.”
New copper block boosts growth narrative
Company-specific news has amplified the rally. Over the weekend, Hindustan Copper disclosed that it had emerged as the preferred bidder for a new copper block in Madhya Pradesh, reinforcing expectations of future volume growth at a time when global demand for the metal is strengthening.
In a regulatory filing on Saturday, the miner said it had been declared the “Preferred Bidder” for the Baghwari-Khirkhori copper and associated mineral block. The company participated in the Madhya Pradesh government’s e-auction for the grant of a mining lease and composite licence for the block.
The forward e-auction was successfully concluded on January 22, with Hindustan Copper submitting the highest final price offer. The company said the acquisition fits its strategy to secure raw material resources amid a buoyant global metals market.
The stock’s latest leg higher builds on gains earlier in the week. On Friday, shares had edged up 0.7% to close at Rs 535.55 on the BSE, compared with Rs 531.80 in the previous session, before the rally gathered pace.
Momentum strong, valuations stretched
The recent surge adds to an already powerful run. Hindustan Copper share price is up nearly 186% over the past six months, a move widely linked to the broader upswing in the commodity cycle, with metal prices scaling record highs.
Technically, the stock is trading above all eight of its key simple moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day SMAs, signaling strong bullish momentum across both short-term and long-term charts.
The Relative Strength Index stands at 72.7, above the 70 mark that is typically seen as overbought, suggesting the possibility of a pullback. The Moving Average Convergence Divergence is at 37.9 and remains above its center line, though below the signal line, indicating continued strength with signs of near-term consolidation.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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