The shares of Hindustan Zinc sharply fell more than 6 percent from their intraday high on December 29 as silver prices declined after a sharp surge.
The shares of the Vedanta Group-company erased all morning gains and fell more than 3 percent to snap a four-session losing streak. This came after the stock hit a fresh 52-week high of Rs 656.35 earlier during the day.
Hindustan Zinc shares dropped more than 6 percent intraday to hit a low of Rs 614.15 apiece, before recovering some minor losses to close at Rs 618.15 apiece.
Vedanta shares also dropped over 1 percent, erasing all early gains.
After hitting an all-time high of Rs 2,54,174 per kg, silver futures with March expiry on MCX fell more than 8 percent to Rs 2,33,120 per kg. The futures contracts with May and July expiries also erased all gains, falling 9 percent and 10 percent respectively after hitting fresh lifetime highs during the day.
This comes after the precious and industrial metal saw a record bull run. “A combination of profit-taking and seemingly productive talks between Trump and Zelensky regarding a potential peace deal have put gold, silver on the back foot,” said KCM Trade Chief Market Analyst Tim Waterer, as quoted by Reuters. “Rate cuts and a continuation of robust industrial appetite paired with supply shortages could have silver primed for a run towards $100 in 2026,” Waterer added.
The recent surge in Hindustan Zinc shares was mostly driven by the sharp rise in silver prices. Hindustan Zinc is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity.
Hence, the intraday fall in silver prices may have impacted Hindustan Zinc’s share price.
Hindustan Zinc share price:
Despite today’s fall, Hindustan Zinc shares have gained more than 2 percent in the past five days, and around 24 percent in the past one month. The stock is up around 39 percent in 2025 so far.
It has a P/E ratio of 26, and a market cap of more than Rs 2.61 lakh crore.
FAQs on Hindustan Zinc Share Price Fall
Q1. Why did Hindustan Zinc shares fall sharply on December 29?
Hindustan Zinc shares fell sharply due to a sudden decline in silver prices. After a strong rally, silver futures witnessed heavy profit-booking, which directly impacted the stock as Hindustan Zinc is India’s largest silver producer.
Q2. How much did Hindustan Zinc stock fall intraday?
The stock dropped over 6 percent from its intraday high, touching a low of ₹614.15 before recovering slightly to close at ₹618.15.
Q3. Did Hindustan Zinc hit a 52-week high before the fall?
Yes, the stock had earlier hit a fresh 52-week high of ₹656.35 during the same trading session before reversing its gains.
Q4. What happened to silver prices on MCX?
Silver futures with March expiry on MCX fell over 8 percent from record highs. Contracts with May and July expiries also declined sharply by 9 percent and 10 percent respectively after hitting lifetime highs.
Q5. What triggered the correction in silver prices?
According to market analysts, the fall was driven by profit-taking after a record bull run and optimism around potential peace talks between Donald Trump and Ukraine President Volodymyr Zelensky, which reduced safe-haven demand.
Q6. How are silver prices linked to Hindustan Zinc’s share performance?
Hindustan Zinc is the largest producer of refined silver in India, with a purity of 99.9 percent. A sharp movement in silver prices has a direct impact on the company’s revenue outlook, influencing its stock price.
Q7. How did Vedanta shares perform during the session?
Vedanta shares fell over 1 percent during the day, erasing all early gains, amid weakness in metal stocks.
Q8. Despite the fall, how has Hindustan Zinc stock performed recently?
Despite the intraday decline, Hindustan Zinc shares are up over 2 percent in the past five days, around 24 percent in the last one month, and approximately 39 percent so far in 2025.
Q9. What is Hindustan Zinc’s current valuation?
Hindustan Zinc has a price-to-earnings (P/E) ratio of around 26 and a market capitalisation exceeding ₹2.61 lakh crore.
Q10. What is the long-term outlook for silver, according to analysts?
Analysts believe that factors such as potential rate cuts, strong industrial demand, and supply constraints could push silver prices higher in the long term, with some forecasts suggesting a possible run toward $100 by 2026.
Q11. Was the fall in Hindustan Zinc shares due to company fundamentals?
No, the decline was largely driven by external market factors, especially the sharp correction in silver prices. There were no major company-specific negative developments reported.
Q12. Did Hindustan Zinc erase its morning gains completely?
Yes, the stock erased all its early gains during the session after touching a 52-week high, as selling pressure intensified following the silver price correction.
Q13. Is Hindustan Zinc still considered a silver-heavy stock?
Yes. While zinc remains its core product, Hindustan Zinc is a major silver producer, and revenue from silver has grown in importance due to rising global prices.
Q14. How does global geopolitics impact silver and gold prices?
Geopolitical developments, such as peace talks or easing tensions, tend to reduce demand for safe-haven assets like gold and silver, often leading to short-term price corrections.
Q15. What role did profit-taking play in the silver price fall?
Profit-taking played a significant role, as traders booked gains after silver prices hit record highs following a prolonged rally.
Q16. How volatile are silver prices compared to gold?
Silver is generally more volatile than gold due to its dual role as both a precious and industrial metal, making it more sensitive to economic and industrial demand shifts.
Q17. Could silver prices recover after this correction?
Market experts suggest that if industrial demand remains strong and supply constraints persist, silver prices may recover after short-term consolidation.
Q18. How did MCX silver futures behave across different expiries?
Silver futures across March, May, and July expiries saw sharp corrections, erasing earlier gains after hitting fresh lifetime highs during the trading session.
Q19. Why do metal stocks react quickly to commodity price changes?
Metal stocks are highly sensitive to commodity prices because their revenues and margins are directly linked to market prices of metals.
Q20. What should investors watch next in Hindustan Zinc stock?
Investors should monitor silver price trends, global metal demand, interest rate cues, and overall market sentiment before taking investment decisions.
Q21. Has Hindustan Zinc broken its broader uptrend?
Despite the intraday correction, the stock remains in an overall uptrend on a medium-term basis, supported by strong recent gains.
Q22. How does Hindustan Zinc compare with global silver producers?
Hindustan Zinc is among the top silver producers globally and holds a dominant position in India due to its scale, cost efficiency, and high-purity output.
Q23. Are analysts still positive on silver for 2026?
Yes, several analysts remain optimistic, citing rate cuts, industrial usage in clean energy, and supply shortages as key bullish factors.
Q24. Did broader market sentiment affect the fall?
Yes, overall caution in global markets and a pullback in commodities added to selling pressure in metal stocks.
Q25. Is this fall an opportunity for long-term investors?
Some investors may view the correction as a buying opportunity, but financial experts advise evaluating risk tolerance and market conditions before investing.
