Hind Zinc sees worst fall in 6-months as silver dips below ₹2.5 lakh/kg

Shares of Hindustan Zinc Ltd fell over 6 per cent on Thursday as silver prices remained volatile and slipped below ₹2.5 lakh per kilogram in the MCX futures market.

 

The Anil Agarwal-owned company's stock price fell as much as 6.36 per cent to ₹589.9 per share, the steepest fall since June 18 last year. Hindustan Zinc's stock pared losses to trade 6 per cent lower at ₹591 apiece, compared to a 0.64 per cent decline in Nifty 50 as of 11:27 AM. 

 

From its peak of ₹656.35 per share, the stock is down over 10 per cent and currently trades at 1.9 times the average 30-day trading volume, according to Bloomberg. The counter has risen 33 per cent in the last 12 months, compared to a 10 per cent advance in the benchmark Nifty 50. Hindustan Zinc has a total market capitalisation of ₹2.49 trillion, as per BSE.  CATCH STOCK MARKET UPDATES LIVE

 

Silver prices fall below ₹2.5 lakh/kg

Prices of MCX Silver futures (March 2026 expiry) fell nearly 4 per cent, slipping below the ₹2.5 lakh per kilogram mark on Thursday. As of 11:30 PM, the metal was trading 3.83 per cent lower at ₹2,40,996 per kilogram. Silver prices hit a high of ₹2,59,692 per kg on January 7, 2026.

 

In the global market, Silver spot prices fell as much as 3.4 per cent to $75.5 per ounce. The metal hit a record high of $84 mark on December 29 last year. Silver prices are up 152 per cent in the last 12 months and are up 6 per cent so far this month. 

 

The rally in silver prices has been supported since last year amid a growing structural supply-demand imbalance, constrained mine output, and rising industrial usage when supply remains limited, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said in a recent note. Silver prices trade lower in the global market as traders look ahead to US jobs data for clues on monetary policy following December FOMC minutes, he added.  ALSO READ | JK Cement, Birla Corp downgraded at JM Financial; cement Q3 preview 

Hindustan Zinc is India's only integrated and listed silver-producing company. It is also the operator of one of the top five silver-producing mines in the world. The company produces approximately 700 tonnes of Silver annually, with the metal accounting for a significant portion of the company's profitability. As of Q1FY26, silver production contributed 41.5 per cent of the total profit, which stayed steady at 41 per cent at the end of Q2FY26.

 

With Hindustan Zinc having hedged 37 per cent of its H2FY26 silver volumes at $37 per ounce, the full benefit of higher silver prices will materialise in FY27, providing a significant Earnings before interest, tax, depreciation and amortisation (Ebitda) boost.  ===== 

(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)