LIC Reduces Stake in Hindustan Copper Amid Impressive Stock Performance
State-insurer Life Insurance Corporation of India (LIC) has recently reduced its stake in Hindustan Copper by 2%, adjusting its holding down to 4.07%. This reduction comes through open-market sales that took place from August 16 to December 23.
– Previous Stake: Before the sale, LIC held a 6.086% stake, amounting to 5.9 crore equity shares.
– Current Holding: According to NSE shareholding data, as of September 30, 2025, LIC’s stake stood at 4.67%.
Strong Market Rally Boosts Hindustan Copper Stock
The stake reduction occurs in the context of a remarkable rally in Hindustan Copper’s shares, which have skyrocketed by 76% in 2025 to date. The stock has proven to be one of the most reliable performers in the metal sector, showing:
– Three-Year Returns: 337%
– Five-Year Returns: 620%
In comparison, the Nifty Metal index has reported:
– Five-Year Returns: 242%
– Three-Year Returns: 72%
– One-Year Returns: 22%
Overbought Conditions and Market Analysis
The recent surge in Hindustan Copper’s stock price has pushed it into overbought territory. As of Wednesday, both the Relative Strength Index (RSI) and the Money Flow Index (MFI) were at:
– RSI: 78
– MFI: 87
Any value above 70 indicates an overbought condition, signaling a potential market correction on the horizon.
Positive Financial Growth Fuels Stock Surge
Hindustan Copper has reported significant financial growth, with an 85% increase in consolidated net profit for the quarter ending September 2025, tallying Rs 186.02 crore.
– Previous Quarter Net Profit: Rs 101.67 crore (July-September FY25)
– Total Income: Rose to Rs 728.95 crore from Rs 550.05 crore year-over-year.
– Expenses: Increased to Rs 480.32 crore from Rs 414.73 crore in the same period last year.
As a state-owned entity under the Ministry of Mines, Hindustan Copper actively engages in the exploration, mining, and beneficiation of copper ore, contributing significantly to its revenue and overall market performance.
Conclusion
LIC’s decision to cut its stake in Hindustan Copper comes amidst the backdrop of a significant stock rally, showcasing the stock’s impressive performance and potential volatility ahead. Investors will need to monitor these developments closely, especially given the stock’s current overbought status and the overall market conditions.