State-owned Hindustan Copper Ltd announced on January 16 that it has commenced underground mining operations at the Kendadih Copper Mine in Jharkhand's Ghatshila region. This development marks a significant operational milestone for India's only vertically integrated copper mining company.

Recent Stock Performance

The company's shares demonstrated strong market performance in recent weeks, with the stock witnessing a sharp rally in the last week of December. This performance marked the company's best weekly showing since February 2021, when shares had surged 73.00% in a single week.

Strategic Partnership Development

In December, Hindustan Copper executed a Memorandum of Understanding with NTPC Mining Ltd (NML) to enhance collaboration on copper and critical minerals development. The strategic agreement encompasses several key areas:

• Joint participation in copper and critical minerals block auctions
• Collaborative exploration activities
• Shared mining operations
• Processing activities partnership

Company Positioning

Hindustan Copper maintains its position as India's only vertically integrated copper miner, providing the company with strategic advantages across multiple sectors. The state-owned enterprise operates throughout the entire value chain, covering:

• Mining operations
• Beneficiation processes
• Smelting activities
• Refining operations

This comprehensive operational structure positions the company as a key beneficiary of rising demand from the power sector, electric vehicle industry, and infrastructure development projects. The commencement of underground mining operations at Kendadih represents another step in expanding the company's production capabilities to meet growing market demand.

Hindustan Copper shares fell sharply for the second consecutive session on Thursday, declining 4.6% to ₹525.20. The stock has now dropped more than 7% over the past two trading days, directly tracking weakness in global copper prices that weighed on investor sentiment across metal stocks.

Copper Price Decline Triggers Selloff

The decline in Hindustan Copper shares coincided with pressure on copper prices at the London Metal Exchange (LME), where the base metal slipped 2.56% to $12,899.50 per metric ton. This pullback has triggered profit-taking in copper-linked stocks after a strong rally that saw benchmark copper prices climb as much as 4.4% to around $13,000 per metric ton.

Recent Rally Context

The recent correction comes after a remarkable surge in copper prices that had pushed the metal up by over 20% since mid-November. Ahead of this decline, Hindustan Copper shares had risen for four straight sessions as copper prices surged to record highs, demonstrating the stock's direct correlation with underlying commodity movements.

Stock Volatility and Valuation Metrics

Hindustan Copper has exhibited significant volatility over the past year, with its 52-week high reaching ₹575.00 and a 52-week low of ₹183.82. This wide trading range highlights the stock's sensitivity to copper price fluctuations and market sentiment.

On the valuation front, the stock trades at premium metrics compared to broader market averages:

Technical Analysis Indicators

Technical momentum indicators suggest the stock may be overheated in the near term. According to Trendlyne data, the 14-day Relative Strength Index (RSI) stands at 79.50, well above the 70 threshold that typically indicates overbought conditions and suggests the possibility of near-term pullback or consolidation.

Despite the elevated RSI reading, the broader trend remains constructive. Hindustan Copper is currently trading above 7 of its 8 key simple moving averages (SMAs), staying above all moving averages except the very short-term 5-day SMA, which reflects continued underlying strength in the stock's trend.

Institutional Investment Activity

Institutional interest in the company has shown improvement despite elevated valuations. Foreign Institutional Investors (FIIs) increased their stake in Hindustan Copper from 3.71% to 5.05% during the September 2025 quarter, indicating growing confidence among overseas investors in the company's long-term prospects.

The combination of technical overbought conditions and recent copper price weakness suggests potential near-term consolidation, though institutional backing and the stock's position above key moving averages indicate underlying strength remains intact.