Hindustan Zinc Share Price Falls 3% Amid Vedanta Stake Sale, Even As Silver ETFs Hit Lifetime Highs

The stock market today saw a contrasting trend between Hindustan Zinc share price and silver-related investments. While silver surged to record highs, Hindustan Zinc shares dipped over 3% on January 28, snapping a two-day winning streak.

Market Performance: Hindustan Zinc vs Silver ETFs

Investors observed a divergence in trends this Wednesday:

• Hindustan Zinc shares slipped to Rs 705.10 per share in early trading, down more than 3% from Tuesday’s close.
• Silver prices soared across futures contracts:
  • March futures: Rs 3,79,400 per kg, up nearly 6.5%
  • May futures: Rs 3,95,000 per kg, up around 6%
  • July futures: Rs 4,11,451 per kg, up nearly 6%
• Silver ETFs mirrored the rally, with multiple funds hitting all-time highs:
  • Aditya Birla Sun Life Silver ETF: Rs 352, up nearly 6%
  • Motilal Oswal, ICICI Prudential, Axis, Nippon, Groww Silver ETFs: up over 5% each
  • Mirae Asset, SBI, Zerodha, DSP Silver ETFs: up nearly 5%
  • UTI, HDFC, 360 ONE, Tata, Edelweiss Silver ETFs: up more than 4%

Despite the booming silver market, Hindustan Zinc shares moved in the opposite direction, signaling the impact of corporate stake movements.

Why Hindustan Zinc Shares Fell Today?

The main reason behind the 3% drop in Hindustan Zinc stock is Vedanta’s announced plan to sell a portion of its stake in the company:

• Vedanta’s committee approved the sale of up to 6.7 crore equity shares, representing 1.59% stake.
• The offer for sale has been priced with a floor of Rs 685 per share, reflecting a 6% discount compared to yesterday’s closing price.
• Through this stake sale, Vedanta is expected to raise Rs 4,589.50 crore.

The OFS schedule is set as follows:

• Non-retail investors: January 28
• Retail investors: January 29

Historically, Vedanta has reduced its Hindustan Zinc stake multiple times over the past two years, mainly to strengthen its balance sheet.

Hindustan Zinc Company Overview

Hindustan Zinc remains a key player in the silver and zinc market in India:

• Promoter stake (Vedanta): 61.84% as of December 31, 2025
• Post-OFS expected holding: 60.25%
• Central government stake: 27.92% at the end of Q3 FY26

The stock price movement today highlights how corporate stake sales can influence investor sentiment, even amid bullish commodity trends like silver.

Summary of Today’s Stock Market Movement

In brief, today’s market activity showcased:

• A 3% fall in Hindustan Zinc shares, down to Rs 705.10
• Vedanta’s 1.59% stake sale via OFS at Rs 685 floor price
• Silver futures hitting all-time highs across March, May, and July contracts
• Silver ETFs surging between 4% and 6%, marking fresh lifetime highs

This divergence emphasizes that stock movements can sometimes be driven more by corporate actions than underlying commodity performance.

Source: Moneycontrol