Shares of Hindustan Zinc slipped around 5% from the day’s high in Monday’s session after a sharp correction in silver prices weighed on sentiment, even as the stock has rallied nearly 30% over the past few trading sessions.
The decline comes amid a sharp pullback in silver, which has turned volatile after hitting record levels last week. In the domestic market, silver prices crashed nearly Rs 21,000 per kg, sliding from recent peaks of around Rs 2,54,174 per kg. On Monday, the white metal traded firmly in the red, triggering profit-taking across silver-linked stocks, including Hindustan Zinc.
Silver has been a major driver behind Hindustan Zinc’s recent rally. The metal has delivered exceptional returns this calendar year, surging nearly 175%, or about Rs 1,52,554, emerging as the best-performing asset class and significantly outperforming gold, which is up over 80% during the same period. Last week alone, silver jumped nearly 15%, supported by strong industrial demand, expectations of US rate cuts, geopolitical tensions, and tightening global supply.
Market participants had turned bullish on silver after reports highlighted China’s decision to impose export restrictions on silver from January 1, 2026, requiring export licences through 2027. Given China’s dominant role as the world’s largest consumer of silver—particularly for solar panels, electronics, and electric vehicles—these restrictions raised concerns over global supply disruptions, pushing prices to record highs.
However, after the steep run-up, silver witnessed a sharp bout of profit booking, which spilled over into related stocks. With Hindustan Zinc having surged strongly in a short span, traders appeared to lock in gains as silver prices corrected from elevated levels.
Despite the intraday decline, Hindustan Zinc remains one of the standout performers in recent sessions, with its movement closely tracking trends in silver prices.
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