Hindustan Copper Share Price Skyrockets 18% to 52-Week High Amid Copper Rally
Shares of mini-ratna public sector undertaking Hindustan Copper witnessed a dramatic surge on Thursday, climbing a staggering 18% to hit a fresh 52-week high. This impressive rally comes on the back of a sharp increase in global copper prices, which spiked by approximately 7% in international markets. The stock has now been rising for four consecutive trading sessions, recording a cumulative gain of 40% during this bullish phase.
Copper Prices Hit Record Highs on Global Exchanges
The metal stock soared to ₹745 on the National Stock Exchange (NSE), with trading volumes remaining significantly higher than average. This upward momentum was fueled by copper prices jumping 6.7% to $13,967 per ton on the London Metal Exchange (LME). Domestically, on the Multi Commodity Exchange (MCX), copper prices reached a new peak of ₹1432.35 per kilogram, marking an increase of 8.4%.
Key Drivers Behind the Copper Price Surge
The global rally in copper prices is primarily attributed to several interconnected factors:
- Increased Demand: Growing worldwide investments in data centers, robotics, and power infrastructure are boosting the demand for copper. This metal is essential for electrification, power grids, electric vehicles (EVs), and renewable energy projects.
- Supply Constraints: This heightened demand is colliding with structural supply limitations. Developing new copper mines is a time-consuming process, often taking many years, and existing ore grades are declining.
- Macroeconomic Factors: A weakening US dollar, rising appetite for tangible physical assets, and elevated geopolitical tensions, partly due to volatile policies from the Trump administration, have provided additional support to commodities as an asset class.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, highlighted that these conditions create an environment where even moderate demand increases can lead to significant price acceleration.
Hindustan Copper: A Strategic Investment Play?
The surge in base metals, particularly copper, has significantly benefited Hindustan Copper. The stock has extended its bull run from 2025 into the current year, having zoomed 109.54% last year and adding another 42% on a month-to-date basis.
Harshal Dasani, Business Head at INVasset PMS, noted that Hindustan Copper is experiencing a new phase of market recognition. Investors are increasingly pricing in its strategic relevance to India's industrial and energy transition. He emphasized that rising domestic copper demand—driven by power, renewables, EVs, and infrastructure—combined with improved visibility on mine expansion and resource additions, has strengthened the company's long-term growth narrative.
"From a legacy PSU miner, Hindustan Copper has now become a critical domestic copper supplier, supported by firm global copper prices and structurally tight supply conditions," Dasani opined.
Technical Analysis and Investment Strategy
Anshul Jain, Head of Research at Lakshmishree, provided insights into the technical outlook for Hindustan Copper. He observed that the stock is trading in an extreme momentum phase, having extended nearly 13 times its 14-day Average True Range (ATR) above the 50-day Exponential Moving Average (EMA) and is significantly distant from the rising 10-week moving average.
Jain cautioned that while this degree of stretch signals strong trend persistence, it also indicates rising mean-reversion risk. Instead of attempting to predict a market top, he advised adopting a momentum-management approach.
"The prudent strategy here is to trail stops rather than exit prematurely. A trailing stop near ₹700 offers a logical reference to protect gains while allowing the trend to mature. As long as the price holds above this level, momentum remains in force. Stops should be actively revised on a day-to-day basis, as any sharp violation would signal trend exhaustion and accelerated profit booking," he recommended.
Disclaimer: This article is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
