Shares of Hindustan Zinc were trading lower on Wednesday, December 31, tracking weakness in silver prices after the precious metal hit the lower circuit on the Multi Commodity Exchange (MCX) earlier in the session.
The stock slipped as investor sentiment across metal-linked counters turned cautious following a sharp correction in silver, which had rallied strongly to record highs earlier this week.
Silver hits lower circuit, triggers profit booking
Silver prices declined by the maximum permitted 6% across key MCX contracts after heavy profit booking. The March 2026 silver contract fell to around Rs 2.35 lakh per kg, down nearly Rs 15,000, while SilverM and SilverMIC contracts also slipped to the Rs 2.37 lakh per kg range.
The correction came just a day after silver touched an all-time high of Rs 2.41 lakh per kg in the domestic market. Market participants attributed the sudden fall to aggressive profit-taking after a steep rally, combined with exchange-imposed circuit limits aimed at containing volatility.
Impact on Hindustan Zinc
Hindustan Zinc shares reacted to the sharp intraday correction in silver prices, as the company has direct exposure to silver as a by-product of its zinc-lead operations.
Gold also under pressure
Gold prices extended their decline alongside silver. Gold of 99.9% purity fell Rs 2,800 to Rs 1,39,000 per 10 grams, marking the second consecutive session of losses in the domestic market.
Global cues remain supportive
Despite the domestic correction, global prices remained firm. Spot silver was trading near USD 75.85 per ounce, while gold hovered around USD 4,401 per ounce. Analysts continue to highlight strong industrial demand for silver from solar, electronics and data centre infrastructure, along with structural supply constraints.
Bigger picture
While silver’s lower circuit move weighed on Hindustan Zinc shares in the short term, both gold and silver are still heading towards their strongest annual gains since 1979. Gold prices have surged over 60% this year, while silver recently touched an all-time high of USD 83.62 per ounce, underscoring the sharp volatility seen in precious metals toward the year-end.
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