Hindustan Copper sees profit booking, falls 10% from record high amid volatility in global metal prices

Hindustan Copper hit fresh 52-week high in trade.

Hindustan Copper shares extended gains for the seventh straight session on Monday, rising nearly 15 percent to hit a fresh 52-week high amid a rally in global metal prices. The stock, however, trimmed most of its gains to settle at Rs 487.85 per share, up 2.58 percent.

The stock climbed as much as 14.79 percent to an intraday high of Rs 545.95, which also marked its new 52-week high. It opened the session with a gap-up of about 14.6 percent and maintained the upward momentum through the day.

With this, the stock has gained more than 36 percent in the last seven trading sessions. The company's market capitalization also briefly touched the Rs 50,000 crore mark.

Monday’s rally was the sharpest single-day rise in the stock since April 2010, following a surge in copper prices to record levels on the London Metal Exchange.

Copper futures on the Multi Commodity Exchange of India also hit a fresh record high, tracking gains in overseas markets. Prices were supported by tight supplies, supportive US economic data, expectations of interest rate cuts by the US Federal Reserve and a weaker dollar.

A weaker dollar typically makes dollar-denominated commodities more attractive for holders of other currencies, thereby boosting demand.

The Nifty Metal index hit a fresh 52-week high today, gaining around 5 percent in eight sessions so far.

"The sharp rise in metal stocks is being supported by a favourable global macro setup rather than a single trigger," said Harshal Dasani, Business Head at INVasset PMS.

"Recent sessions saw Nifty Metal and key names like Hindustan Copper, Hindalco, Vedanta and SAIL push to fresh highs, aided by broad-based buying across ferrous and non-ferrous counters. Turnover has picked up, signalling institutional interest returning after a weak November," he added.

Metal stocks rise for 8th day as global prices soar, Hind Copper, SAIL shares jump up to 15%

Looking ahead, momentum in metal stocks could sustain, though volatility cannot be ruled out, said Dasani.

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