Hindustan Copper rises nearly 4% as copper prices gain on weak dollar

Hindustan Copper Ltd.’s shares gained nearly 4 per cent intra-day in Friday’s trade as copper prices on Multi Commodity Exchange surged nearly 1 per cent to on the back of a cooling dollar.  The rupee appreciated 6 paise, or about 0.06 per cent, against the US dollar, rising from ₹95.71 to ₹95.65 on Friday.

 

As of 01:58 PM, the company’s share price was trading 2.95 per cent higher at ₹576.48 apiece; meanwhile, Nifty 50 was trading flat at 24,234.25. At intra-day the stock gained 3.75 per cent to hit an intra-day high of ₹581.

 

LME copper spot price is currently trading near its all-time high of $14,594/t, reached on 17 Aug 2026. At the current level of $14,113/t, spot copper price is up 46.3 per cent Y-o-Y on the LME. 

 

 

The surge in price, as per Sunny Agrawal, head of fundamental research at SBI Securities, is driven by growing demand from data centres and EV applications, which has led to a tightening of exchange inventories. 

 

Compared with the peak inventory level of 0.40 million tonnes recorded in Apr 2026, LME copper inventories have declined by 37.5 per cent to 0.25 million tonnes as of July 2026. 

 

“Copper prices have also remained supported by easing expectations of US interest rate hikes and tariff-driven trade flows, amid continued uncertainty regarding the potential imposition of US import tariffs on refined copper,” he added.

 

For Hindustan Copper, the combination of elevated LME copper prices, a softer US dollar index, and strong 1QFY27 earnings appears to be driving the positive sentiment surrounding the stock, Agrawal said.

 

Similar sentiments were echoed by Khushi Mistry, research analyst at Bonanza, noting that Copper remains structurally positive as mine supply growth is constrained by project delays, declining ore grades and long development timelines, while demand is supported by electrification, grids, EVs and AI/data centres. 

 

“The recent LME squeeze also highlights tight physical availability, although rising inventories could temper near-term prices. A weaker US dollar is supportive for copper as it lowers the metal’s cost for non-dollar buyers and generally boosts commodity demand,” she said.

 

Vipin Kumar, AVP research at Globe Capital Market, noted that on long-term charts, Hindustan Copper has been forming higher highs and higher lows since March 2020, signaling a strong broader bullish structure. Within this uptrend, the stock is currently consolidating in a Symmetric Triangle pattern. 

 

“Given its strong long-term structure and copper prices sitting near record highs, existing long positions can be held. Fresh positions may be accumulated on dips around the 200 days EMA (483 level), which aligns with the upward-sloping trendline of the triangle formation,” he said.

 

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