return of copper
Whenever precious metals are discussed in the stock market, the names of silver and gold often come first, but this time the story has changed. Not silver, but the storm of copper created such an environment in the market that the market cap of a government company crossed Rs 50,000 crore for the first time. This miracle has been done by Hindustan Copper Limited, whose shares have seen a tremendous rise in recent times.
Strong buying was seen in Hindustan Copper shares on Monday. The stock reached its 52-week high with a rise of about 11 percent. In this rally that has been going on for seven consecutive trading sessions, the stock has risen by almost 50 percent. Due to this sharp rise, the total market valuation of the company exceeded Rs 50 thousand crore for the first time, which clearly shows the confidence of investors.
Copper prices changed the picture
The biggest reason for this rise is the huge rise in copper prices. Copper prices are increasing rapidly in both the country and world markets. Copper strengthened on MCX. At the same time, prices in the international market also reached near the upper levels. It is believed that the prices are being supported due to the fear of America imposing import duty on copper and supply disruption in some mines. When copper prices rise, companies like Hindustan Copper directly benefit because their earnings and margins improve.
Big role of EV and electrification
Today’s world is rapidly moving towards electric vehicles (EV) and electrification. There is huge demand for copper in EV, power grid, charging infrastructure and renewable energy sectors. For this reason, the demand for copper is expected to remain strong in the long run. This is the reason why investors are showing interest in copper related companies and Hindustan Copper is taking huge advantage of it.
How much progress has the stock shown?
If we look at the figures, the performance of the stock is shocking. The stock has risen by more than 40 percent in the last one month. At the same time, since the beginning of the year till now it has received almost double the returns. For long-term investors, this stock has proved to be a multibagger, which has given manifold returns in the last five years.
What should investors do?
Market experts believe that after such a surge in the short term, profit booking can be seen. Therefore, small-time investors can focus on stop-loss or profit booking. At the same time, for investors who are thinking for the long term, it is advisable not to rush to higher levels. Buying on a good dip may be a more sensible move, as the strong demand story for copper continues for now.
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