Copper prices bounced back on Thursday after two days of heavy losses, with investors seizing bargain opportunities as the market showed signs of recovery. According to The Economic Times, London Metal Exchange's benchmark three-month copper gained 1.1% to $13,233 a metric ton by 0915 GMT, recovering from losses of more than 4% during the previous two sessions. Ewa Manthey, commodities strategist at ING, noted that copper is recovering after a steep sell-off earlier this week, supported by a softer dollar and improved risk appetite. The recovery comes as globally, stocks surged after strong earnings and forecasts from chip giants Micron and Qualcomm helped reignite the AI rally, contributing to the positive sentiment across broader financial markets.
Market expert Dharmesh Kant from Cholamandalam Securities views the recent commodity corrections as buying opportunities rather than warning signs. According to reports from The Economic Times, Kant believes the broader commodity cycle remains intact, supported by improving global demand, infrastructure spending and India's economic momentum. Copper, aluminium, crude oil and silver have witnessed sharp declines over the past few sessions, but Kant considers such corrections normal parts of long-term commodity cycles. He expects industrial demand for metals such as aluminium, copper and zinc to strengthen as global economic activity improves, with the current market volatility creating attractive entry points for investors.
Silver continues to enjoy structural support due to its widespread use in electric vehicles, electronics and renewable energy sectors. As reported by The Economic Times, Kant expects silver demand to compound at 15-17% CAGR going forward, driven by applications in electric vehicles, electronics and solar panels. This industrial connotation provides fundamental support for silver prices despite current market volatility, with the metal showing resilience during periods of commodity corrections.
The metals recovery extended beyond copper, with LME aluminium rising 0.8% to $3,148 a ton after having given up all its gains since the Iran war started. According to The Economic Times, LME nickel added 0.3% to $16,860 a ton after top producer Indonesia said it had not yet decided its nickel production quota for 2026 amid speculation the cap would be increased. Other base metals also showed gains, with LME zinc rising 0.3% to $3,432 a ton, lead adding 0.4% to $1,921, and tin advancing 1.1% to $50,245. The recovery was supported by a slightly weaker dollar index, which hit a 13-month peak on Wednesday ahead of U.S. inflation data that could support growing belief among investors that interest rates will be hiked at least once this year.
Despite recent volatility in defence stocks, Kant remains optimistic about the sector's long-term prospects. As reported by The Economic Times, he continues to favour Bharat Electronics (BEL), Hindustan Aeronautics (HAL) and Mazagon Dock Shipbuilders over Bharat Dynamics. Recent selling pressure has been driven by trading positions and news flow rather than any deterioration in fundamentals. He highlighted the potential of the long-awaited P-75 submarine project, which could significantly expand Mazagon Dock's order book and transform its growth trajectory.
Among sectors benefiting from lower crude prices, Kant prefers banking and financial services over automobiles and auto component manufacturers. According to The Economic Times, while paint companies have recovered significantly, expensive valuations and intense competition limit their upside. Auto and ancillary companies may struggle with high base effects in the second half of the year. Kant believes banking remains the strongest indirect beneficiary of improving macroeconomic conditions and lower energy prices, making it one of the preferred sectors for investors over the coming quarters.
