Hindustan Zinc share price faced a sharp sell-off on Thursday, January 8, 2026, dropping over 6% to ₹588.35 on the NSE. This marked the company’s largest intraday decline in six months, following a spectacular rally in 2025 that had seen the stock surge 38%.
The fall came amid retreating silver prices, which form a major part of Hindustan Zinc’s earnings, and a broader 3.5% decline in the Nifty Metal Index. Among metal stocks, Hindustan Zinc emerged as the top loser, reflecting the market’s sensitivity to global commodity movements.
Market Performance
Thursday’s session began with Hindustan Zinc opening at ₹623, but selling pressure built steadily as the day progressed. By the close, the stock touched its lowest level since June 18, 2025.
Key trading highlights:
- Two-day decline: 8.5%
- January 2026 performance: Down 3.4%
- Impact on Nifty Metal Index: Fell 3.5%
The sell-off highlighted how investor sentiment can quickly reverse after a sustained rally, particularly when underlying commodities like silver show signs of cooling.
Silver Price Retreat Hits the Stock
Silver has historically contributed significantly to Hindustan Zinc’s profitability. In H1FY26, silver accounted for 41% of the company’s EBIT, up from 28% in FY23.
Recent price movements in silver:
- Wednesday, Jan 7: Silver March futures dropped 3.17%
- Thursday, Jan 8: Prices fell another ₹10,000/kg, hitting ₹240,605
- Two-day cumulative drop: ₹18,206/kg
- From record high of ₹259,322: Silver is down ₹18,717
- International markets: Spot silver dropped 3.4% to $75.5/oz, after reaching a record $84/oz in late December 2025
The decline came amid profit booking by investors and caution ahead of upcoming US economic data, which could influence global interest rates and metal prices.
Global Economic Influence
Hindustan Zinc’s stock movements were also affected by mixed US economic indicators. Recent data painted a varied picture:
- Job openings (Nov): Fell more than expected, suggesting cooling labour demand
- Private payroll growth (Dec): Rebounded but fell short of expectations
- ISM services index (Dec): Showed unexpected improvement
These mixed signals strengthened the US dollar, which rose for the third straight day to 98.7, making dollar-priced metals like silver more expensive for holders of other currencies.
Investors are now closely watching weekly jobless claims and the December employment report, as these reports could further influence silver prices and, in turn, Hindustan Zinc’s stock performance.
Hindustan Zinc Company Snapshot
Hindustan Zinc remains a key player in the zinc and silver mining sector in India, with silver forming a critical part of its earnings. The company’s financial contribution from silver has steadily increased, reflecting strong operational performance in H1FY26.
Key financial highlights:
- Silver contribution to EBIT (H1FY26): 41%
- Silver contribution to EBIT (FY23): 28%
- Stock’s 2025 rally: 38%
The recent fall in silver prices is closely tied to the stock’s correction, emphasizing Hindustan Zinc’s reliance on global commodity trends.
Summary
Thursday’s sharp decline in Hindustan Zinc share price underscores the stock’s sensitivity to silver prices and global economic developments.
Key takeaways:
- The stock fell 6% intraday to ₹588.35, its biggest drop in six months
- Nifty Metal Index declined 3.5%, with Hindustan Zinc as the top loser
- Silver prices, which contributed 41% to H1FY26 EBIT, fell sharply, dropping ₹18,206/kg over two days
- Global economic signals, including US labour data, impacted investor sentiment
- The US dollar rally further pressured precious metals
As markets continue to adjust after the 2025 bull run, investors are watching silver prices and US economic updates, which will likely shape Hindustan Zinc’s stock movement in the coming days.
Source: Livemint
Easy & quick
Leave A Comment?