Hindustan Copper soars 18% to a record high as metal stocks extend rally

Metal stocks surged for a third straight session, with Hindustan Copper jumping 18% to a record high after emerging as the preferred bidder for a Madhya Pradesh copper block. Strong global metal prices and improving industrial data lifted overall sector sentiment.

Metal stocks continued their strong upward momentum on January 29, marking a third consecutive session of gains, even as broader markets remained under pressure. The Nifty Metal index climbed more than 2 percent in morning trade, touching a fresh record high and reflecting robust investor interest in the sector.

Hindustan Copper emerged as the top gainer, with its shares surging around 18 percent to hit an all-time high of ₹745 apiece. The stock has staged an extraordinary rally, soaring nearly 305 percent in the past nine months from its April low of ₹183.82. The sharp upswing underscores sustained bullish sentiment around the company and the broader copper theme.

The immediate trigger for the rally was the company’s announcement on January 24 that it has been declared the preferred bidder for the Baghwari-Khirkhori Copper and associated mineral block in Madhya Pradesh. Hindustan Copper participated in the state government’s e-auction for a mining lease and composite licence for the block and secured the status after submitting the highest final price offer. The development is seen as a strategic boost to the company’s resource base and long-term production outlook.

In addition to company-specific news, rising global copper prices have played a significant role in lifting the stock. The red metal has witnessed a strong uptrend over the past year, supported by expectations of sustained demand from infrastructure, electrification, and renewable energy projects worldwide. Market participants view copper as a critical metal for the energy transition, enhancing its long-term investment appeal.

The broader metal rally was also aided by strength in precious metals. Gold and silver futures on the Multi Commodity Exchange (MCX) hit fresh lifetime highs, improving overall sentiment toward the metals pack. Higher prices across metals often attract investor flows into mining and metal-related equities.

Macro factors have added to the positive tone. The US Federal Reserve kept interest rates unchanged, as expected, while domestic industrial data showed resilience. India’s Index of Industrial Production (IIP) growth accelerated to a 26-month high of 7.8 percent year-on-year in December, driven by strong consumer demand. Mining and electricity sectors led the growth, though manufacturing expansion moderated slightly.

Other metal stocks also posted gains. National Aluminium Company (NALCO) and Jindal Steel rose more than 4 percent, while Hindalco Industries, Vedanta, NMDC, and Tata Steel advanced around 2 percent each. Steel Authority of India (SAIL), Hindustan Zinc, and JSW Steel recorded gains of over 1 percent. However, a few stocks such as APL Apollo Tubes and Welspun Corp traded marginally lower.

Despite weakness in benchmark indices like the Sensex and Nifty, the metal sector has stood out as a pocket of strength. Analysts note that expectations of policy support for manufacturing and infrastructure, along with firm commodity prices, could continue to support metal stocks in the near term.