Shares of Hindustan Copper fell nearly 10% in pre-market trade today, tracking the sharp and historic collapse in copper prices on the Multi Commodity Exchange (MCX). The stock slipped as copper futures hit the 6% lower circuit, extending the global metals selloff seen over the past few sessions.
The fall in Hindustan Copper mirrors the severe correction in copper prices, which have dropped close to 10% in a single day after touching record highs earlier this week. Copper’s rally had been driven by speculative positioning and expectations of aggressive U.S. interest rate cuts. However, sentiment reversed sharply as investors rushed to lock in profits, triggering heavy unwinding across industrial metals.
Pressure on copper intensified after U.S. President Donald Trump announced former Federal Reserve Governor Kevin Warsh as his pick to head the U.S. Federal Reserve. Markets interpreted the move as reducing the likelihood of aggressive rate cuts, pushing the U.S. dollar higher. A stronger dollar typically weighs on dollar-denominated commodities like copper, hurting price momentum and demand expectations.
In addition, leveraged positions, stop-loss triggers, and algorithmic selling amplified the decline, especially in thin liquidity conditions. Caution ahead of the China Lunar New Year holiday, when the world’s largest metals consumer shuts markets for a week, has also led traders to reduce exposure, adding to selling pressure.
As a copper-linked stock, Hindustan Copper remains highly sensitive to sharp moves in the underlying metal. The sudden and deep correction in copper prices has directly impacted sentiment around the stock, leading to the near-10% fall.
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