Hindustan Copper shares fall over 4% as copper prices retreat
Hindustan Copper shares declined 4.6% to ₹525.20, extending losses to over 7% across two sessions as LME copper prices fell 2.56% to $12,899.50 per metric ton. The correction follows a strong rally where copper surged over 20% since mid-November to record highs around $13,000. Technical indicators show overbought conditions with RSI at 79.5, though the stock trades above 7 of 8 moving averages. Foreign institutional investors increased their stake from 3.71% to 5.05% during September 2025 quarter despite premium valuations.
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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.
| Price Movement: | Details |
|---|---|
| Current Share Price: | ₹525.20 |
| Daily Decline: | 4.6% |
| Two-day Decline: | Over 7% |
| LME Copper Price: | $12,899.50 per metric ton |
| LME Daily Change: | -2.56% |
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:
| Valuation Metric: | Current Level |
|---|---|
| Price-to-Earnings Ratio: | 93.84 |
| Price-to-Book Ratio: | 20.03 |
| 52-week High: | ₹575.00 |
| 52-week Low: | ₹183.82 |
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.
| Institutional Holding: | Previous | Current | Change |
|---|---|---|---|
| FII Stake: | 3.71% | 5.05% | +1.34% |
| Period: | September 2025 quarter |
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.
Historical Stock Returns for Hindustan Copper
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.43% | +1.06% | +45.31% | +92.95% | +120.33% | +681.94% |
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