Hindustan Copper’s stock fell up to 3.3% to Rs 515 on Dec 31 after copper prices slipped, but the company is still on track for more than a 100% gain this year.
Why the stock dipped
Investors took profits after copper rallied hard earlier in the year. The benchmark three‑month copper price on the London Metal Exchange was down to about $12,550 per tonne, nudging the stock lower.
What’s behind the copper rally
Copper has risen over 40% so far in 2025. The surge is driven by fears of supply shortages, a weak U.S. dollar, and booming demand from electrification, renewable energy and AI‑related infrastructure projects.
How Hindustan Copper benefits
- India’s only fully integrated copper producer, gaining from higher global prices.
- Higher earnings from dollar‑linked contracts and a weaker rupee improve margins.
- Supply problems at major mines in Indonesia and Chile keep global copper tight, supporting prices.
Short‑term caution
Technical indicators show the stock may be overbought. The Relative Strength Index (RSI) is high and a negative divergence hints that a short‑term pullback could happen.
Some analysts suggest a “buy on dips” strategy for those who want to enter the stock at lower levels.
Long‑term outlook
Demand for copper is expected to stay strong as the world builds more electric vehicles, renewable energy projects and modern infrastructure. That structural tailwind should keep Hindustan Copper well positioned in the years ahead.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.