Hindustan Zinc Shares Plunge Amid Silver Price Drop

Significant Decline in Hindustan Zinc Shares

Mumbai, Jan 8: Shares of Hindustan Zinc faced substantial selling pressure on Thursday, plummeting over 6% to Rs 588.35 on the National Stock Exchange (NSE).

This decline represents the largest single-day drop in the past six months. The sharp decrease was primarily attributed to an unexpected correction in silver prices, which negatively affected investor confidence across the metal sector following a robust rally last year.

The sell-off extended beyond just one stock, with the entire metal sector trading in the negative during the session.

The Nifty Metal index fell approximately 3.5%, with Hindustan Zinc being the most significant underperformer among its competitors.

Opening at Rs 623, the stock continued to decline throughout the day, reaching its lowest point since June 18.

Following Thursday's drop, Hindustan Zinc has now experienced a loss of about 8.5% over just two trading days.

This downturn has erased its gains from early 2026, resulting in a nearly 3.4% decrease so far this month.

The decline in silver prices poses a significant concern for the company, as silver is a crucial component of its revenue.

In the first half of FY26, silver accounted for approximately 41% of Hindustan Zinc's earnings before interest and taxes, compared to around 28% in FY23.

A continued decrease in silver prices could directly affect the company's operational performance.

After a strong 38% rally in 2025, silver prices have recently cooled off due to profit-taking.

Investors are also exercising caution ahead of critical US economic data that may impact the interest rate outlook from the US Federal Reserve.

Domestically, silver futures for March delivery on the Multi Commodity Exchange (MCX) dropped another Rs 10,000 per kilogram on Thursday, reaching an intra-day low of Rs 240,605.

This decline followed a 3.17% drop in the previous session, totaling over Rs 18,000 per kilogram in losses over two days.