Copper is shining brighter than gold in 2025, and the rally is sending two big Indian metal stocks soaring. Here’s a plain‑English look at what’s happening and why it matters to everyday investors.
Why copper is in the spotlight
Demand for copper has jumped as factories, electric‑vehicle makers, and renewable‑energy projects need more of the metal. The price rise has helped copper‑related companies post strong earnings, making the sector one of the best‑performing groups of stocks this year.
Hindustan Copper stock surge
The state‑owned Hindustan Copper hit a fresh 52‑week high of ₹439.30 and closed the latest session about 7% up at ₹436.50. It is trading well above its 50‑day (₹349.3) and 200‑day (₹275.1) simple moving averages, indicating strong upward momentum.
Technical indicators show the stock is in an overbought zone – the RSI is around 78 and the Money Flow Index is about 87 (both above the 70 level that typically signals overbought conditions).
Foreign institutional investors have increased their stake to 5.1% (up 180 basis points), showing growing confidence from abroad.
Over the past three years the share has risen roughly 337%, and over five years it’s up about 620%, far outpacing the Nifty Metal index’s 72% and 242% gains for the same periods. The latest quarterly results showed an 85% jump in net profit to ₹186.02 crore, driven by higher revenues (₹728.95 crore versus ₹550.05 crore a year earlier).
Hindalco Industries gains
Hindalco, part of the Aditya Birla Group, also touched a 52‑week high of ₹882.30 and finished the day near flat at ₹863.95. Like Hindustan Copper, it trades above its 50‑day (₹815) and 200‑day (₹715) moving averages.
The RSI is moving toward the overbought range and the MFI is already at 82, confirming strong buying pressure. Foreign investors now hold 28.1% of the company, up 50 basis points from the previous quarter.
The stock has delivered 101% returns over three years and 265% over five years, beating the sector benchmark.
Technical outlook from analysts
- Nilesh Jain (Centrum Broking): sees Hindustan Copper targeting ₹460‑₹490 with support around ₹400; recommends a medium‑term accumulation.
- For Hindalco, Jain suggests a target of ₹900 with support at ₹820, implying about a 4% upside.
- Anuj Gupta (Ya Wealth Global Research): expects Hindustan Copper to climb to ₹550 if it breaks the ₹490 resistance, a potential 26% gain. He notes strong support at ₹400 and ₹330.
- Both analysts point to ongoing industrial demand and limited physical supply as tailwinds for the metals.
Fundamental considerations
While earnings and demand are solid, some experts warn that much of the upside may already be priced in. One strategist suggests that the hype around copper being the “next gold” has attracted a lot of speculative money.
He advises investors to consider taking partial profits now and to look for buying opportunities if the stock pulls back to the ₹350‑₹400 range for Hindustan Copper. Long‑term investors can stay invested in both stocks, but should be mindful of the market’s enthusiasm.
Takeaway for retail investors
Copper’s strong performance is lifting Hindustan Copper and Hindalco well above the market average. The technical charts look bullish, but the overbought signals mean a pullback could happen. If you already own these stocks, you might lock in some gains and consider re‑entering on lower dips. New investors should watch for price corrections before buying, and keep an eye on the broader demand for copper in the renewable‑energy and electric‑vehicle sectors.
Disclaimer
Remember, this is just my perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.