Hindustan Copper shares gain 10% in three trading sessions. What should investors do in 2026?

Shares of Hindustan Copper rallied as much as 5% to their day’s high of Rs 570 per share on January 5, after LME copper prices gained nearly 3% per metric ton on Monday. With today’s gain, the counter is for a third consecutive session and has risen 10% over the same period.

Fundamentally, the backdrop for copper remains supportive. Dipan Mehta, Director at Elixir Equities, described the copper market as being in a fantastic growth phase as demand is being driven by AI infrastructure, data center buildouts, and global green energy transitions. Supply-side risks remain significant, with halted operations at Freeport-McMoRan’s Grasberg mine in Indonesia, responsible for 3% of global output, and labor unrest in Chile and Peru.

He noted that higher realisations from dollar-linked contracts and a depreciating rupee have also strengthened the company’s margin outlook. According to Mehta, metal companies such as Hindustan Copper naturally benefit from currency movements since a significant portion of their revenues is tied to dollar-linked prices.

Next year, Goldman Sachs Research expects the London Metals Exchange (LME) copper price to remain in a range of $10,000-$11,000 “as strong global demand growth from the grid and power infrastructure, backed by investment in strategic sectors such as AI and defence” keep prices from falling below $10,000. The LME copper price is forecast to average $10,710 in the first half of 2026.

“While the global copper market has been in surplus this year, a combination of limited growth in the supply from mines and rising structural demand from power infrastructure should create more of a balance between supply and demand next year, and lift prices beyond 2026,” the international brokerage said.

However, one factor that could lead to higher demand on the London copper market next year is the potential for the US to place tariffs on refined copper imports. The US commerce secretary is expected to make a recommendation on copper tariffs to the White House by June 2026 (and possibly sooner), Goldman Sachs Research’s base case is that a refined copper tariff of at least 25% will be implemented shortly after.

From a technical standpoint, the trend remains decisively bullish. Ajit Mishra of Religare Broking noted that Hindustan Copper has staged a clean breakout above its earlier multi-year resistance zone. The stock has seen impulsive rallies followed by shallow pullbacks, suggesting strong institutional participation. As long as the Rs 480–500 zone is protected, the structure remains positive. Sustained strength above Rs 520 could open the door for a medium-term move toward Rs 600 and beyond, Mishra said, while also warning that mildly overbought conditions could lead to periodic consolidation.

The Hindustan Copper stock gave a staggering 110% return in 2025.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)