Shares of Hindustan Copper fell sharply on Friday, January 30, emerging among the top losers on the NSE, as weakness in copper prices triggered heavy selling across metal stocks. The stock was trading at Rs 702.55, down 7.57%, with investors reacting to a sharp correction in domestic and global copper markets.
The primary reason behind the fall is the steep decline in copper prices. Copper futures on the Multi Commodity Exchange slipped over 2% to around Rs 1,378 per kg, while global copper futures dropped more than 3% to around $6 per pound, reversing gains from the previous session. The correction came after a strong rally across the metals complex earlier this week.
The sell-off in copper prices was largely driven by aggressive profit booking. Copper, along with gold and silver, had surged to record or near-record levels, prompting traders to lock in gains amid stretched valuations and rising volatility.
A rebound in the US dollar added further pressure on copper prices. A firmer dollar typically weighs on dollar-denominated commodities, making them less attractive for non-US buyers and encouraging short-term selling.
Market participants also reassessed the fundamentals behind the recent rally, which had been supported by expectations of strong long-term demand amid limited supply following years of underinvestment in new mining capacity. While structural demand drivers such as electrification, data centres, and electric vehicle infrastructure remain intact, the rapid pace of the recent price rise led to a sharp near-term correction.
The broader weakness across metals weighed on metal-linked stocks, with Hindustan Copper facing sharper selling pressure due to its direct exposure to copper prices. The decline reflects commodity-led sentiment rather than any company-specific development.
Overall, Friday’s fall in Hindustan Copper shares mirrors the correction in copper prices after an overheated rally, combined with profit booking and global market pressures.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
