Hindustan Zinc Share Price Rallies as Silver Prices Touch Record Highs

Market Performance

Hindustan Zinc shares stayed firmly in focus as the stock climbed 3.5% to ₹587.50, marking its highest level in nearly 16 months. The rally stood out on a day when broader markets remained under pressure, highlighting the stock’s strong independent momentum.

The move added fresh strength to an already solid run. In December alone, Hindustan Zinc shares have gained 19%, taking the stock’s overall rise in 2025 so far to around 30%.

Main News: Silver Prices Fuel the Rally

The sharp rise in Hindustan Zinc share price closely tracked the ongoing surge in silver prices, which hit fresh record highs both globally and in India.

• Spot silver prices jumped 2.8% to an all-time high of $65.63 per ounce
• This marked the first-ever move above the $65 level
• On the domestic front, MCX silver prices for March contracts surged 4.2%
• MCX silver touched a record ₹2,06,111 per kg
• Silver prices are now up 134% year-to-date, nearly double gold’s gains over the same period

The sharp move in silver prices has been a key trigger behind the renewed buying interest in Hindustan Zinc shares.

Why Silver Prices Are Rallying

The rally in silver prices gained momentum after fresh economic data from the US signalled potential shifts in monetary policy.

Recent data showed:

• The US unemployment rate rose to 4.6% in November
• This was the highest level since September 2021
• The data strengthened expectations of an interest rate cut by the US Federal Reserve

Lower interest rate expectations and a softer US dollar supported bullion prices, making silver more attractive to global investors. This combination pushed silver prices to new record levels.

Company Details: Why Hindustan Zinc Is Sensitive to Silver

Hindustan Zinc benefits directly from higher silver prices due to silver’s meaningful role in its earnings mix.

Key points to note:

• Silver contributed 40% of the company’s profitability in the September quarter
• Rising silver prices tend to lift margins and operating performance
• The recent rally in silver has improved overall sentiment around Hindustan Zinc shares

As silver prices move higher, the impact flows directly into the company’s financials, making the stock closely linked to trends in silver prices today.

Market Capitalisation Impact

The strong rally in Hindustan Zinc's share price has also been reflected in its market valuation.

• Current market capitalisation stands at around ₹2.43 lakh crore
• The company has added nearly ₹55,000 crore in market value in 2025 so far

This sharp expansion underscores how closely the stock has tracked the surge in silver prices.

Summary

Hindustan Zinc shares rallied to a 16-month high as silver prices touched fresh record levels across global and domestic markets. Strong gains in spot silver prices and MCX silver prices acted as the primary trigger, supported by softer US economic data and expectations of lower interest rates. With silver contributing significantly to profitability, the rally in silver prices has kept Hindustan Zinc's share price firmly in the spotlight for market participants tracking metals-linked stocks.