Hindustan Copper Tumbles 7% as Metal Stocks Lose ₹1.25 Lakh Cr

Sharp Correction Hits Hindustan Copper

Hindustan Copper Ltd. experienced a significant downturn on January 30, 2026, with its share price falling by 7.19% to close at ₹705.45, down from its previous close of ₹760.05. This sharp decline was part of a broader, severe sell-off that gripped the entire Indian metal sector, erasing substantial investor wealth in a single trading session.

Metal Sector Faces Widespread Rout

The Nifty Metal index was the hardest-hit sector, collectively losing ₹1.25 lakh crore in market capitalization. The sell-off was widespread, with only two of the fifteen stocks on the index managing to close with gains. The decline was led by heavyweights Vedanta Ltd. and its subsidiary Hindustan Zinc Ltd., which together accounted for 56% of the total market cap erosion. Vedanta shares fell 11.2%, wiping out over ₹33,000 crore, while Hindustan Zinc plummeted 12.5%, losing ₹36,000 crore in market value.

Other major players were not spared. Hindalco and Tata Steel saw their market capitalizations decrease by ₹13,644 crore and ₹11,472 crore, respectively. Hindustan Copper itself contributed significantly to the losses, with its market cap eroding by approximately ₹7,170 crore.

Global Commodity Volatility Triggers Sell-Off

The primary catalyst for the market carnage was turbulence in global commodity markets. Copper prices retreated from record highs following a delayed start on the London Metals Exchange due to technical issues. Compounding the pressure, the CME Group increased its margins for copper trading by 20%. This downturn in copper, a key product for Hindustan Copper, directly impacted investor sentiment.

Furthermore, gold and silver prices experienced wild swings throughout the day, adding to the uncertainty. This global volatility created a risk-off environment, prompting investors to liquidate their positions in metal stocks, which are highly sensitive to international price movements and economic outlooks.

A Stunning Reversal After a Strong Rally

The day's sharp fall stands in stark contrast to Hindustan Copper's stellar performance in the recent past. The stock had been on a powerful bull run, delivering multi-bagger returns to investors. Prior to the drop, the stock had just touched its 52-week high of ₹760.05.

Over the past year, the stock has generated returns of over 208%. The long-term performance is even more impressive, with a 3-year return of 483% and a 5-year return exceeding 1079%. This context highlights the severity of the single-day correction and suggests a period of profit-booking after a sustained rally.

Key Financial Metrics

Despite the price correction, Hindustan Copper's valuation metrics remain high, reflecting the market's optimism based on its past performance. The company's Price-to-Earnings (PE) ratio stands at a high 120.35, with a Trailing Twelve Months (TTM) Earnings Per Share (EPS) of ₹5.87. Its market capitalization is approximately ₹68,716.73 crore, ranking it 4th within the non-ferrous metals sector.

Market Impact and Sector Outlook

The table below illustrates the extent of the damage across major metal stocks during Friday's session, highlighting the sector-wide nature of the sell-off.

Analysis and Forward Look

The sharp correction in Hindustan Copper and the broader metal sector serves as a reminder of the industry's inherent volatility and its close ties to global markets. While the long-term growth story, driven by infrastructure and industrial demand in India, remains intact, short-term performance is susceptible to international commodity price fluctuations and macroeconomic headwinds.

Investors will be closely watching for stability in global metal prices and any further cues from central banks regarding monetary policy. The recent price action underscores the importance of monitoring global trends when assessing investments in the metals and mining space.