Mumbai: Hindustan Copper shares have been on a strong upward run on Dalal Street, surprising many investors. On Friday, the PSU stock jumped as much as 8.65 percent to reach Rs 474.25 on the BSE, marking a fresh 52-week high. With this rise, the stock has gained nearly 29 percent in just six trading sessions, touching its highest level since 2010.
Copper Price Boom Lifts the Stock
The main reason behind this rally is the sharp rise in copper prices across global and domestic markets. On the MCX, copper futures for December delivery surged more than 5 percent to hit a record high of Rs 1,224.95 per kilogram. Globally, copper prices have risen over 42 percent so far this year and earlier touched a record USD 5.95 per pound.
On the Comex exchange, copper futures traded close to $5.78 per pound, staying near multi-month highs. This strong performance in copper prices has directly benefited Hindustan Copper, India’s only vertically integrated copper producer.
Global Demand and Supply Factors
According to the analysts, copper prices were supported by tight global supply conditions and strong economic data from the US. The US economy grew at its fastest pace in two years during the third quarter, boosting demand from industries that use large amounts of copper.
Strong consumer spending, rising exports, and healthy industrial activity have increased demand from sectors such as construction, power, and electric vehicles. These factors have created optimism around copper-related stocks.
Technical Indicators Show Caution
While the rally looks impressive, technical indicators suggest some caution. Data from Trendlyne shows the stock is currently in the overbought zone. The Relative Strength Index stands at 78.4, while the Money Flow Index is at 87.5. Such high levels often signal that the stock may see short-term cooling or profit booking.
What Lies Ahead?
Hindustan Copper’s sharp rise reflects strong commodity market trends and investor confidence. However, with technical indicators flashing overbought signals, investors may watch global copper prices closely before taking fresh positions.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional before making any investment or trading decisions.
