Hindustan Copper's stock shot up more than 7% on Wednesday, hitting its highest level in a year as copper prices around the world climbed.
Why the share price jumped
The shares opened about 2.5% higher and kept climbing to an intraday high of ₹436.50. This marks the fifth consecutive day the stock has risen.
What’s lifting copper prices
Global copper prices stayed near record highs after the U.S. reported its fastest economic growth in two years during the third quarter. Strong consumer spending and a rebound in exports boosted optimism for copper demand.
- Weaker U.S. dollar: Makes copper cheaper for buyers using other currencies.
- Potential rate cuts: Expectations that the Federal Reserve may lower interest rates support commodity prices.
- Growing demand from AI and clean energy: New technologies need more copper for wiring and components.
Supply concerns adding pressure
China’s biggest copper smelters plan to cut output by more than 10% in 2026 to deal with overcapacity. This reduction could tighten global supply and keep prices high.
Recent change in shareholding
Life Insurance Corporation of India reduced its stake in Hindustan Copper from about 6.1% to just over 4%.
Bottom line for investors
Higher copper prices improve revenue and profit margins for Hindustan Copper, which is why the stock is gaining momentum. Keep an eye on global copper trends and any further supply changes.
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.