Hindustan Copper Scales a 15-Year High as Global Copper Rally Lifts Sentiment
Shares of Hindustan Copper Ltd (HCL) surged sharply on December 26, climbing nearly 8 percent to Rs 473 per share, marking their highest level since November 2010. The rally was driven by a fresh spike in global copper prices, with benchmarks in Shanghai and New York touching record highs amid tightening supply and growing demand linked to energy transition themes.
Hindustan Copper emerged as the top gainer on the Nifty Metal index, which edged up 0.2 percent on the day, reflecting renewed interest in metal stocks as investors recalibrated portfolios ahead of 2026.
Copper Prices Hit Record Highs on Supply Tightness and Weaker Dollar
The sharp move in Hindustan Copper shares came alongside a strong rally in global copper markets. Prices jumped across key exchanges as investors priced in tighter supply conditions and improving demand prospects.
In China, copper prices climbed 2.7 percent to 98,780 yuan per tonne on the Shanghai Futures Exchange. In the US, Comex copper surged 3 percent to $5.743 per pound, the highest level since the extraordinary short squeeze seen in July. On the London Metal Exchange, three-month copper contracts traded close to record territory before markets shut for the Christmas break.
Analysts said multiple global factors are converging to support copper prices:
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Expectations of rate cuts by the US Federal Reserve in 2026
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A weaker US dollar, boosting dollar-denominated commodities
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Persistent supply disruptions and underinvestment in new mines
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Rising demand from renewable energy, EVs and power infrastructure
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Hindustan Copper Extends a Powerful Weekly and Yearly Rally
Hindustan Copper’s stock has been on a strong upward trajectory in recent months. The latest rally extended its weekly gains to 21 percent, the best weekly performance since December 2023. On a year-to-date basis, the stock has surged 89 percent in 2025, making it the biggest gainer on the Nifty Metal index, which itself has risen about 24 percent during the same period.
At 10:15 am on December 26, the January copper contract on MCX was trading 3.5 percent higher at Rs 1,216.05 per kg, after touching a record Rs 1,223.3 per kg earlier in the session.
Analysts See Tailwinds, but Flag Risk of Near-Term Profit Booking
Market experts believe the rally is fundamentally supported but caution that some profit booking cannot be ruled out at current levels.
Siddharth Maurya, Founder and Managing Director at Vibhavangal Anukulakara Pvt. Ltd., said the recent gains reflect strong sectoral momentum rather than speculative excess.
“Hindustan Copper’s recent performance is largely a result of the supportive global copper price trend and the overall improvement in the metals sector. While profit-taking is natural and healthy, the present earnings visibility and sectoral tailwinds continue to make the stock relevant for investors.”
He added that rising metal prices are improving margins and revenue visibility, keeping institutional interest intact.
Earnings Momentum and Expansion Plans Support the Long-Term Story
According to Kalp Jain, Research Analyst at INVasset PMS, Hindustan Copper’s rally is backed by improving fundamentals alongside favourable commodity trends.
“The stock has climbed to fresh multi-year highs, with gains of over 87 percent in 2025, significantly outperforming benchmark indices. Strong earnings growth, expansion plans and capacity additions continue to underpin investor confidence.”
He noted that while a recent stake reduction by a large institutional investor reflects profit-taking, it does not necessarily signal weakening fundamentals. Instead, it highlights valuation sensitivity after a sharp run-up.
India’s Copper Demand Outlook Remains Structurally Strong
India’s copper demand is expected to rise sharply in the coming years, driven by both traditional and new-age sectors. Industry estimates suggest copper demand could reach 3.24 million tonnes by 2030, supported by:
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Construction and urban infrastructure
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Power transmission and electrification
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Renewable energy installations
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Electric vehicles and data centres
As India accelerates its energy transition and technology investments, copper is emerging as a strategic metal critical to the country’s long-term growth.
Hindustan Copper’s Strategic Role in India’s Mineral Security
HDFC Securities has highlighted Hindustan Copper’s importance in India’s mineral ecosystem, particularly as the country seeks to reduce import dependence for critical resources.
“Hindustan Copper continues to be central to India’s mineral security and long-term resource planning, supported by ongoing modernisation, capacity expansion and sustainable mining initiatives,” the brokerage said in a recent note.
The company has outlined plans to triple mining capacity from 4 million tonnes per annum in FY25 to 12.2 million tonnes by FY31, backed by strategic capital investments and resource acquisitions.
Should Investors Book Profit or Stay Invested?
While short-term volatility and profit booking are possible after such a steep rally, analysts broadly agree that the structural outlook for copper — and Hindustan Copper — remains favourable. For long-term investors, the company’s dominant domestic position, expansion roadmap and alignment with India’s energy transition story continue to offer a compelling investment narrative.
In the near term, investors may see consolidation, but as long as global copper prices remain firm and execution stays on track, Hindustan Copper is likely to remain on investors’ radar well into 2026.
