Global copper markets experienced significant momentum as trading resumed after the Christmas holiday, with Hindustan Copper emerging as a key beneficiary of the sustained rally. The company's shares extended their impressive winning streak, marking the seventh consecutive day of gains amid rising commodity prices and supply-side concerns.

Hindustan Copper Extends Rally

Hindustan Copper shares surged 8.5% to ₹516.30, as the stock reached levels not seen since March 2010. The company's market capitalization crossed the ₹50,000 crore milestone during this rally, reflecting strong investor confidence in the copper sector.

Global copper prices on the London Metals Exchange approached the $13,000 mark, driving the surge in Hindustan Copper's stock price. The rally was primarily driven by two key factors: anticipated US import tariffs on copper and unplanned mine outages affecting global supply chains.

Silver Market Dynamics

Peter McGuire, Chief Executive Officer of trading.com, attributed silver's explosive rally to genuine physical shortages rather than speculative activity. The London Bullion Market, which maintains approximately $700 billion worth of gold for liquidity purposes, currently holds no silver reserves for similar events.

McGuire emphasized that decades of underinvestment in capital expenditure contributed to the current shortage, with the recent precious metals rally catching many market participants by surprise.

Geopolitical Developments

Donald Trump hosted Ukrainian President Volodymyr Zelenskyy at Mar-a-Lago following a 60-minute phone conversation with Russian President Vladimir Putin. Trump indicated that both leaders expressed desire for peace, with Zelenskyy noting that territorial concessions would be part of future discussions. Negotiators from both sides have reportedly mapped out step-by-step approaches to advance peace talks.

Market Liquidity Events

Thirteen companies are set to see their shareholder lock-in periods expire during the final week of the year, releasing shares worth approximately ₹55,000 crore ($6 billion) for trading. HDB Financial Services represents the majority portion of this release, with other companies including:

• Ventive Hospitality
• Glottis
• Ellenbarrie Industrial Gases
• Akme Fintrade
• Kalpataru
• Allied Blenders & Distillers

Defense Sector Developments

The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, was expected to approve procurement proposals worth ₹80,000 crore. Key agenda items included Embraer-based Airborne Early Warning and Control systems and integration of the indigenous NETRA AEW system, potentially accelerating fresh orders for the defense sector.

Automotive Sector Performance

Domestic auto demand remained robust in December, with VAHAN registration data showing 9% year-on-year growth for the December 1-28 period. Passenger vehicle registrations demonstrated particularly strong performance with 15% growth, while commercial vehicle registrations approached 16% growth, highlighting the continued divergence between four-wheeler and two-wheeler segments.

Hindustan Copper shares closed at ₹487.85 on Monday, gaining 2.58% after hitting a new 52-week high of ₹545.95 during intraday trading. The stock opened with a gap-up of 14.60% and surged as much as 14.79% before profit-booking erased most of the day's sharp gains, marking the seventh consecutive session of advances.

Seventh Consecutive Session Rally Continues

The sustained momentum has delivered exceptional returns for investors, with shares gaining over 36% during this seven-day winning streak. The company's market capitalization briefly touched the significant milestone of ₹50,000 crore during intraday trading before settling at ₹47,176.27 crore by the session's end.

Record Trading Activity and Market Dynamics

Monday's intraday surge represented the sharpest single-day rise for Hindustan Copper since April 2010. The stock witnessed heavy trading activity with a volume of 1,954.43 lakh shares and a traded value of ₹9,866.56 crore. However, the deliverable quantity stood at just 18.63% of the total traded volume, indicating significant intraday speculation.

Global Copper Market Reaches Record Levels

The rally was driven by copper prices hitting record levels on the London Metal Exchange, with copper futures on the Multi Commodity Exchange of India also scaling fresh all-time highs. Comex Copper extended its winning streak for the second straight week, rallying over 6% to trade near its 52-week high of $5.90.

Several factors are propelling copper prices higher:

• Supply Constraints: Tight supplies and mine disruptions constraining global availability
• Tariff Concerns: Tariff-related concerns affecting market dynamics
• Economic Support: Supportive US economic data and expectations of Federal Reserve interest rate cuts
• Currency Impact: Weaker dollar making dollar-denominated commodities more attractive

Broader Metals Sector Strength

The US Dollar Index slipped below 98 after failing to sustain above 100, making dollar-denominated commodities more attractive for global buyers. The Nifty Metal index also hit a fresh 52-week high, gaining around 5% over eight sessions. Aluminium has broken out from a three-year base, signalling a structural uptrend in base metals.

Market Context and Outlook

As India's only vertically integrated copper producer, Hindustan Copper remains uniquely positioned to capitalize on sustained global copper demand. The combination of record commodity pricing, supply constraints, and supportive macroeconomic factors continues to drive bullish sentiment around copper-related investments.

The stock's performance reflects broader strength in the metals sector, with the approach toward the ₹50,000 crore market capitalization milestone during intraday trading underscoring significant value creation during this exceptional rally period, despite profit-booking pressures at higher levels.