The direct impact of the turmoil in the global market is visible on the Indian stock market and your portfolio. If you had bet on the metal sector, especially public sector companies (PSUs), in the last one month, you will definitely be in profit. The prices of metals like copper and aluminum are skyrocketing in the international market. India's two major government companies, Hindustan Copper and NALCO, have benefited from this boom. The shares of these companies have tremendously increased the wealth of investors within just 30 days.

Hindustan Copper: 55% rise in 30 days

The shares of the giant public sector company Hindustan Copper have created a stir in the market. On Tuesday, the stock witnessed a rise for the fourth consecutive day and touched its all-time high of Rs 574.60 on NSE. If we look at the data of last one month, this stock has given an excellent return of about 55.38 percent to the investors.

The main reason for this huge surge is the record breaking of copper prices on the London Metal Exchange (LME). For the first time in history, copper has crossed $ 13,000 per tonne. Its future prices on MCX are also at a new peak. Since Hindustan Copper is a major producer of copper in India, any rise in global prices is directly reflected in the company's share price.

Supply crisis worldwide, profit in India

JP Morgan's report suggests that there are huge supply side problems behind the fire in copper prices. Workers are on strike at Capstone Copper's 'Mentoverde Mine' in Chile, the world's largest copper producing country. On the other hand, production related obstacles are also coming to light in Indonesia's Grasberg mine.

When supply is less and demand remains intact, it is natural for prices to increase. Market experts believe that unless the supply chain improves, copper prices may remain at high levels. This is the reason why stocks like Hindustan Copper are getting continuous support in the Indian market.

NALCO is also not behind, prices at record level of 3 years

Not only copper, the aluminum manufacturing government company National Aluminum Company Limited has also made investors rich. NALCO shares have risen 30 percent in the last one month and 74 percent in the last one year. On Tuesday this share closed at Rs 348.40.

The reason behind this is also global. Aluminum prices have crossed $3,000 per tonne for the first time after 2022. According to Bloomberg report, China has imposed a limit on its smelting capacity and production is decreasing due to the cost of electricity in Europe. On the other hand, demand for aluminum from the construction and renewable energy sectors remains strong. Most of the brokerage houses are still positive about NALCO and are advising 'Buy'.

Still an earning opportunity or threat?

After such a big rally, should one book profits now or make new purchases? Tips2Trades analyst A.R. According to Ramachandran, the chart of Hindustan Copper is 'bullish', but it has now come in the 'overbought zone', which means that there may be a slight decline or profit booking from here.

From a technical point of view, the level of Rs 606 is a big resistance for Hindustan Copper. If the stock crosses this level, further gains may occur. At the same time, there is strong support on the downside at Rs 555. If the stock breaks this level and comes down, it can fall to Rs 475. In the case of NALCO too, analysts believe that there may be some downside risk from the current levels, hence investors should take any action keeping the stop-loss in mind.