Indian Cable Stocks Plummet on Copper Price Hikes

India's major cable and wire manufacturers have announced price hikes to offset surging global copper costs. The three percent increase, effective September 4 for some companies, has sent stocks plummeting by up to six percent.

Copper prices on the London Metal Exchange have surged due to supply constraints and massive infrastructure demands from the transition to renewable energy.

Polycab India raised its listing prices by three percent across its 90-metre and 180-metre wire portfolios, effective September 2. Finolex Cables executed a three percent price hike on light-duty and communication cables, also on September 4. RR Kabel announced impending price increases ranging from two to three and a half percent.

The market reacted swiftly to the announcements, punishing the stocks amid fears that higher consumer prices will suppress demand in the construction and real estate sectors.