Hindustan Copper attempts to lead metals stock rebound despite global sell-off

Metal stocks were trading mixed on Monday, February 2, after retreating from their 2026 highs.

The Nifty Metal index was up 0.20% in early trade. Over Friday and Sunday, five stocks in the index erased close to ₹2 lakh crore in market capitalisation, led by Hindustan Zinc and its parent Vedanta.

Hindustan Copper opened around 4% higher on Monday after emerging as the biggest laggard in the previous session, when the stock plunged 19%. It also saw unusually heavy trading activity on Sunday, with about 51.1 million shares changing hands and a traded value of nearly ₹3,018 crore.

Hindustan Zinc was trading about 2% higher on Monday. The stock had declined 13% on Sunday, taking its market capitalisation loss to over ₹60,000 crore across Friday and Sunday.

Vedanta shares were also trading in the green after falling 10% on Sunday. The two-day decline on Friday and Sunday had wiped out around ₹54,000 crore in market value, after the stock had nearly touched a ₹3 lakh crore valuation last week.

The pressure on metal stocks mirrors continued weakness in global commodity markets. Copper fell further on Monday, adding to the steep correction seen at the end of last week, as traders brace for heightened volatility following a turbulent start to the year.

On the London Metal Exchange, copper declined as much as 3.3% to $12,722 a tonne. The metal had surged to a record above $14,500 last Thursday before tumbling below $13,000 in intraday trade on Friday.

Base and precious metals have been rattled over the past week by intense speculative activity, particularly in China, driven by concerns around the US dollar’s outlook.

Adding to the turmoil, Chinese metals traders have reportedly suffered losses of at least 1 billion yuan, or about $144 million, after a counterparty fled the country leaving trades unsettled. The situation has raised alarms among regulators over hidden financial risks.

The crisis is linked to a trading network run by metals dealer Xu Maohua, known as “The Hat”, with state-backed SDIC Commodities Co. among the prominent entities involved, according to people familiar with the matter.

Xu allegedly owed money for copper and other metal shipments, triggering a chain of unpaid dues and at least one lawsuit seeking over 200 million yuan in damages.

Across commodities, spot silver is now trading flat after plunging as much as 6% in early trade, briefly rebounding before giving up gains. Prices had initially slipped below the $80 an ounce mark from record highs above $120. Gold was trading around 3% lower in early spot market action.

The broader sell-off has been exacerbated by a stronger US dollar, which posted its biggest rally since May after US President Donald Trump named Kevin Warsh as the next Federal Reserve Chair.

The dollar index has climbed back above 97 after sliding to its lowest levels since February 2022 earlier last week.