Hindustan Zinc shares drop as silver rally loses steam; check details

Shares of Hindustan Zinc Ltd. fell over 2 per cent on Wednesday, taking cues from a falling silver price, on likely profit booking after the metal's record rally. 

 

The Vedanta Group company's stock price fell as much as 2.4 per cent to ₹610.3 per share, after a 3 per cent fall on Monday. The Hindustan Zinc stock pared losses to trade 2.2 per cent lower at ₹610 apiece, compared to a 0.56 per cent advance in Nifty 50 as of 12:10 PM. 

 

From its peak of ₹656.35 per share, the stock is down nearly 7 per cent and currently trades at 1 times the average 30-day trading volume, according to Bloomberg. The counter has risen 37 per cent this year, compared to a 10 per cent advance in the benchmark Nifty 50. Hindustan Zinc has a total market capitalisation of ₹2.58 trillion.   CATCH STOCK MARKET UPDATES TODAY LIVE

 

Silver price rally takes a back seat

On Wednesday, Silver prices tumbled with MCX Silver futures (March 2026 expiry) hitting a low of ₹2,32,228 per kilogram. As of 12:15 PM, the metal was trading 6 per cent lower at ₹2,35,736 per kilogram. 

 

In the global market, Silver spot prices fell as much as 7.56 per cent to $70.52 per ounce. The metal hit a record high of $84 mark on December 29. Silver prices are up 26 per cent so far in December and are up 146 per cent this calendar year. 

 

Silver is leading the downside amid elevated volatility, trading near $72-$72.30 per ounce after a sharp 7.2 per cent single-session decline, retreating significantly from recent record highs of $82-$84, Ponmudi R, chief executive officer of Enrich Money, said. "The correction has been driven primarily by CME margin hikes, forced deleveraging, year-end tax harvesting, and thin liquidity conditions, keeping near-term sentiment cautious despite the intact broader trend."

 

As long as $70.40 holds, the trend remains corrective rather than bearish, Ponmudi said. "A break below $70.40 could trigger a short-term reversal toward $65, while a decisive move above $78.67 would invalidate the bearish setup and signal trend continuation toward fresh highs."  ALSO READ | PSU Bank index soars 31% in 2025; outperforms Nifty for 5th straight year 

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.