Hindustan Copper Shares Surge Nearly 14% On Positive Copper Futures Sentiment
The stock came out of an F&O ban, which also supported the upward movement.
Hindustan Copper Ltd. shares surged 13.92% on Thursday to post their biggest intraday rise in a week, on positive sentiment from price rise of copper futures.
The stock came out of an F&O ban, which also supported the upward movement.
Three-month forward contract of copper on London Metal Exchanges settled 1.65% higher at $8,715 on Wednesday.
Copper future prices rose to their highest level since August, as traders hope for rate cuts by the U.S. Federal Reserve in 2024, Bloomberg reported.
Lower borrowing costs help boost growth, subsequently increasing demand for commodities.
The fear of over supply of copper next year, on back of projection, were offset by the Panama government's decree to shut down Anglo American Plc's plant, to slash production next year, Bloomberg reported.
Shares of Hindustan Copper surged as much as 13.92%, the highest single-day percentage gain since Dec. 21. It was trading 12.69% higher at 1:07 p.m. This compares to 0.17% advance on NSE Nifty 50.
The stock rose to its highest price level since Nov. 30, 2012. It has risen 143.34% year-to-date. Total traded volume so far in the day stood at 7.1 times its 30-day average. The relative strength index was at 87 as 1:41 p.m., implying that the stock is overbought.