India’s biggest life insurer, LIC, has lowered its holding in copper miner Hindustan Copper to about 4% after selling roughly 2% of its shares. The move comes while the company's stock has surged more than 75% this year.
What Happened?
LIC originally owned a 6.09% stake in Hindustan Copper, which equals around 5.9 crore shares. Between mid‑August and late December, it sold shares in the open market, reducing its stake to 4.07%.
Why Hindustan Copper’s Stock Is Soaring
- Strong earnings: The company reported an 85% jump in quarterly net profit to Rs 186.02 crore.
- Revenue growth: Income rose to Rs 728.95 crore from Rs 550.05 crore a year earlier.
- Sector outperformance: Hindustan Copper’s three‑year return of 337% dwarfs the Nifty Metal index’s 72%.
Impact of LIC’s Sale
Even though LIC trimmed its position, the overall demand for the stock remains high. The share price is in an “overbought” zone, meaning it may be due for a short‑term pause, but the long‑term fundamentals look solid.
Key Takeaways for Retail Investors
- LIC’s reduction signals confidence in the stock’s price, not a lack of faith in the business.
- The copper miner’s earnings and revenue growth are the main drivers of its rally.
- Investors should watch technical indicators like RSI and MFI for possible short‑term corrections.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.