Hindustan Copper Ltd (HCL) has recently experienced a significant surge in its stock price, mirroring the bullish trend in global copper markets. On December 29, 2025, the stock soared as much as 15% to reach a lifetime high of ₹545.95 on the BSE. This impressive rally marks a continuation of strong performance, with the stock climbing over 48% in just seven trading sessions.
Global Copper Rally Fuels Investor Interest
The primary catalyst for this surge in HCL's stock is the escalating global copper prices. Copper prices have rallied by more than 35% this year and are set to log their biggest annual gain since 2009, driven by rising demand from technology and energy transition sectors, as well as tariff-related uncertainties. Supply challenges in key producing regions like Chile and Indonesia have further tightened the global market, contributing to the price surge.
On the Multi Commodity Exchange (MCX), copper futures for December delivery jumped ₹93.35, or 8.07%, to hit a record of ₹1,249.95 per kg. The January contract also climbed ₹105.5, or 9%, to touch a lifetime high of ₹1,277.95 per kg. In international markets, Comex copper futures were trading 3.8% higher at $5.78 per pound. Copper prices on the London Metals Exchange (LME) hit an all-time high of $12,282.40 per tonne before settling at $12,116.65 per tonne. As of December 29, 2025, copper rose to $5.83 USD/Lbs, a 1.05% increase from the previous day and a 44.03% increase compared to the same time last year.
Several factors are contributing to this historic rally. Constraints in the physical market are reshaping price discovery mechanisms, and mining sector disruptions across multiple continents have transformed background risk factors into primary market drivers. This reflects unique market dynamics not seen in previous commodity cycles. The convergence of genuine physical scarcity, policy-driven demand acceleration, and structural technological requirements creates market conditions requiring updated analytical approaches.
Hindustan Copper: Benefiting from a Bullish Trend
Hindustan Copper, India's only vertically integrated copper producer, stands to gain significantly from the current market dynamics. The company's financial performance reflects this positive trend. For the quarter ended September 2025, HCL's net profit grew 83.0% YoY to ₹1,860 million, and net sales rose 38.6% to ₹7,180 million. For the year ended March 2025, the company reported a 58.1% increase in net profit to ₹4,674 million, with revenue growing 20.6% to ₹20,710 million.
Investment Strategy: Ride the Wave or Book Profits?
Given the impressive surge in HCL's stock price, investors are faced with a crucial decision: should they invest further or book profits? While the medium-term outlook for copper remains strong, analysts advise caution in the near term. The Relative Strength Index (RSI) is currently at elevated levels and showing signs of negative divergence, suggesting the stock may be overbought and could experience profit booking.
Sachin Gupta, VP-Research at Choice Broking, suggests a "buy on dips" approach for investors looking to enter afresh. He notes that the stock has strong support around ₹450, with resistance seen near ₹500.
Long-Term Prospects
Looking ahead, the long-term prospects for copper and, consequently, Hindustan Copper, appear promising. The Indian copper market is expected to grow at a compound annual growth rate of 7.2% from 2025 to 2030. Copper is at the heart of the energy transition, serving as a critical component for transforming the Indian economy, from power grids and electric vehicles to construction and advanced manufacturing.
While volatility is expected, the overall trend for copper prices remains positive, driven by rising industrial applications and global electrification trends. This bodes well for companies like Hindustan Copper.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Consult with a qualified financial advisor before making any investment decisions.
