Hindustan Copper shares extended their remarkable rally for the sixth consecutive session, rising as much as 9.80% on Friday to hit an intraday high of ₹479.45. The stock has delivered exceptional performance, gaining 22% this week and marking its best weekly performance since February 2021, when it had surged 73% in a single week.

Record-Breaking Performance Metrics

The copper major has emerged as one of the standout performers with extraordinary gains across multiple timeframes. Trading volumes reached their highest levels since December 2023, with around 9.20 crore shares changing hands compared to the 20-day average of 1.80 crore shares.

Global Copper Rally Drives Momentum

The stock's surge aligns with the rally in global copper prices, which have reached record highs after crossing the $12,000 per tonne mark recently. This represents the best monthly performance for the stock since December 2024, highlighting the strong correlation between commodity prices and equity performance.

Strong Financial Fundamentals

Hindustan Copper's robust financial performance has provided solid backing for the share price rally. The company reported strong growth across key financial metrics in the September quarter.

Technical Analysis and Market Indicators

The stock is currently trading above its 50-day and 200-day simple moving averages of ₹349.30 and ₹275.10 respectively. However, the extended rally has pushed technical indicators into overbought territory, with RSI and MFI hovering around 78.00 and 87.00 respectively.

Market expert Nilesh Jain from Centrum Broking remains constructive on metal stocks, describing the chart structure as positive. He sees Hindustan Copper targeting ₹460-490 range with support at ₹400, recommending accumulation from a medium-term perspective.

Expert Outlook and Recommendations

Anuj Gupta from Ya Wealth Global Research expects a medium-term target of ₹550 for Hindustan Copper if the ₹490 resistance is breached, implying potential upside of 26.00%. He noted that physical shortages and rising industrial demand for base metals are likely to support the stock.

However, Kranthi Bathini from WealthMills Securities warned that most positives are now priced in, advising near-to-medium-term investors to book some gains. He recommends buying Hindustan Copper on dips in the ₹350-400 range, while long-term investors can remain invested.

Hindustan Copper shares scaled fresh heights on Wednesday, jumping 6.7% to close at ₹434, marking the highest closing level since November 2010. The rally was part of a broader metals surge that also lifted Hindustan Zinc by 2.6% to ₹625, even as benchmark indices ended marginally lower.

Metal Stocks Outperform Broader Market

The Nifty Metal index gained 0.2%, bucking the broader market trend with the Nifty slipping 0.1%. Hindustan Copper's surge reflects the continued strength in copper prices, with the stock having gained over 17% in recent weeks amid a global supply crunch and accelerating demand from new-age sectors.

Copper Supply Crunch Drives Rally

Analysts attribute Hindustan Copper's surge to different metal-specific triggers. "There is a global supply crunch in copper, while demand has risen sharply," said Parthiv Jhonsa, vice president at Anand Rathi Institutional Equities. He pointed to rising consumption from electric vehicles, renewable energy, and AI-led data centres as key drivers pushing copper prices higher.

Jhonsa added that copper mining is becoming increasingly complex globally, giving Hindustan Copper an advantage as it can expand output by developing existing mines at relatively lower costs.

Silver Rally Boosts Hindustan Zinc

Hindustan Zinc's gains are increasingly linked to a sharp surge in silver prices, with the white metal hitting a record high of ₹2,27,000 per kilogram on Wednesday, surging by ₹9,750. The Vedanta-owned company is India's top silver producer.

"Silver is an important by-product for Hindustan Zinc, and higher silver prices materially support its revenues, margins and cash flows," said Sonam Srivastava, founder and CEO of Wright Research.

Exceptional Year-to-Date Performance

Both metal stocks have delivered outstanding returns, significantly outperforming broader market indices. The strong performance reflects investor confidence in the companies' ability to capitalize on favorable commodity price trends.

Beyond its traditional role as a precious metal, silver is seeing growing usage in solar panels, electronics and electric vehicles, tightening the demand-supply balance. This trend, combined with Hindustan Zinc's strong balance sheet and steady cash generation, has made it a preferred play in the current metals upcycle.