Hindustan Zinc Share Price Slides as Silver Prices Cool Off | Stock Market Today

Market Performance

Hindustan Zinc share price came under pressure on January 7, slipping nearly 2% as silver prices saw a sharp pullback after hitting record highs earlier in the day. The fall in silver didn’t stay limited to commodities. Its ripple effect was visible across silver-linked stocks and ETFs, dragging sentiment in the broader stock market today.

The stock dropped to around ₹632.60, tracking the sudden reversal in silver prices. The move came after a strong rally in the metal, where traders booked profits following fresh lifetime highs.

Short-term volatility clearly made its presence felt.

Main News: Silver Prices See Sharp Reversal

Silver, which had been trading near record levels, witnessed a steep intraday correction across futures and spot markets.

Here’s how silver moved during the session:

• March MCX silver futures fell nearly 3% to ₹2,51,729 per kg, after touching a lifetime high of ₹2,59,692 per kg
• May expiry futures slipped 2.5% to ₹2,58,566 per kg, giving up earlier gains
• July expiry contracts declined over 2% to ₹2,65,028 per kg
• Across expiries, silver dropped by nearly ₹8,000 per kg from the day’s peak
• Spot silver slid 3.5% to $78.43 per ounce, from an all-time high of $83.62 recorded on December 29

The sharp move reflected profit booking after a strong rally, with global cues also weighing on precious metals during the session.

Silver ETFs Mirror the Fall

The pressure wasn’t limited to futures markets. Silver-linked exchange-traded funds also reacted to the cooling prices.

• 360 ONE Silver ETF declined close to 2%
• Axis, Tata, SBI, and HDFC Silver ETFs traded with marginal gains, but erased sharper intraday upside
• Nippon India, UTI, ICICI Prudential, Motilal Oswal, and Zerodha Silver ETFs rose over 0.5%, but also gave up earlier momentum

Overall, silver ETFs moved in sync with the metal, ending near the day’s lows after a volatile session.

Hindustan Zinc Share Price Reaction

As India’s largest silver producer, Hindustan Zinc remains closely linked to trends in silver prices. With silver cooling off sharply, the Hindustan Zinc share price reflected the change in sentiment.

Despite the intraday dip:

• The stock is up nearly 3% in the past 5 days
• It has gained over 29% in the last one month
• Over the past six months, the stock is up around 45%

The day’s fall came after a strong run, showing how quickly momentum-driven moves can reverse when the underlying commodity cools off.

Company Details

Hindustan Zinc is India’s largest silver producer, delivering refined silver with purity levels of at least 99.9%. Along with silver, the company is a key player in the zinc and lead space, making it sensitive to movements in global metal prices.

Summary

The decline in Hindustan Zinc share price on January 7 was driven by a sharp pullback in silver prices after they touched fresh lifetime highs. Silver futures across multiple expiries dropped by nearly ₹8,000 per kg, while spot prices also corrected sharply.

Silver ETFs mirrored the volatility, erasing intraday gains and ending near the day’s lows. Despite the short-term dip, Hindustan Zinc continues to sit on strong recent gains, highlighting how closely the stock tracks movements in silver.

In the stock market today, the session served as a reminder that sharp rallies—especially in commodities—often come with equally sharp pauses.