Shares of Hindustan Zinc declined around 2.4% to Rs 579.80 in Tuesday’s session, tracking weakness in global silver prices.
Silver slump weighs on sentiment
The key trigger appears to be the sharp fall in silver prices globally. Spot silver recently dropped nearly 6% to around $73 per ounce, extending a three-week losing streak. Since Hindustan Zinc is one of India’s largest producers of zinc and silver, movements in silver prices directly influence investor sentiment toward the stock.
A correction in silver prices typically impacts:
- Realisations from silver sales
- Near-term revenue expectations
- Profitability outlook, especially if the fall sustains
Even if zinc remains stable, a sharp move in silver — which contributes meaningfully to earnings — can pressure the stock.
Broader metal weakness
The decline is also in line with weakness seen across metal counters. Stocks such as Vedanta and Hindustan Copper were also trading lower, indicating a broader risk-off mood in the metals segment.
Global cues and volatility
The fall in silver followed the unwinding of speculative positions after the metal had earlier surged above $120 per ounce in late January. Thin liquidity in Asian markets and uncertainty around US Federal Reserve policy have further increased volatility in precious metals.
Until silver stabilises, metal stocks with silver exposure like Hindustan Zinc may continue to reflect global price movements closely.
