Shares of Hindustan Zinc crashed nearly 10% today, tracking the sharp selloff across metal markets as zinc prices weakened amid a broader commodities rout on Budget Day.
The fall in Hindustan Zinc comes as zinc futures on MCX slipped over 3%, extending losses alongside copper, silver and other metals. The correction in zinc prices follows heavy profit booking after a strong rally, with base metals witnessing sharp reversals after touching recent highs.
Global sentiment around metals deteriorated after investors began locking in profits, as expectations of aggressive U.S. interest rate cuts faded. The nomination of former Federal Reserve Governor Kevin Warsh as the next U.S. Fed Chair led markets to reassess the pace of future rate easing, strengthening the U.S. dollar. A firmer dollar typically pressures industrial metals like zinc by making them costlier for global buyers.
Zinc prices were also hit by spillover weakness from copper, which fell close to 9% on MCX after a steep rally. During broad risk-off phases, base metals often move together, amplifying downside pressure on metal producers’ stocks.
Additionally, thin liquidity, leveraged position unwinding, and algorithmic selling accelerated the decline. Traders are also cutting exposure ahead of the China Lunar New Year holiday, when the world’s largest metals consumer shuts markets for a week, increasing volatility and risk aversion.
As a zinc-linked stock, Hindustan Zinc remains highly sensitive to sharp movements in the underlying commodity. The combination of falling zinc prices, global metals volatility, and profit booking after a strong run-up has driven the near-10% crash in the stock today, despite no company-specific negative development.
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