The stock market today opened on a cautious note for metal counters, and Hindustan Zinc share price was no exception. After riding high on silver’s powerful rally, the mood shifted as silver prices corrected sharply, dragging related stocks and ETFs lower.
This wasn’t panic selling. It looked more like the market catching its breath after a scorching run.
Market Performance: What Happened Today?
In early trade on Wednesday, Hindustan Zinc shares slipped nearly 2%, trading around ₹611.05 on the NSE.
The trigger was clear and immediate — silver prices witnessed a steep fall after touching record highs just days earlier. When a rally stretches too far, too fast, markets often pause. That’s exactly what played out today.
Silver Prices Tumble After Record Rally
Silver, which had been on a strong bull run, saw heavy profit-booking on December 31.
Here’s how the numbers stacked up:
- MCX Silver futures (March expiry)
Dropped over 7% to around ₹2,32,228 per kg - MCX Silver futures (May expiry)
Fell close to 8% to about ₹2,35,512 per kg
The decline came after silver surged to fresh lifetime highs, making it vulnerable to short-term corrections.
Beyond profit-booking, easing global risk sentiment also played a role. Expectations around a possible US-brokered peace deal between Russia and Ukraine reduced demand for safe-haven assets like silver.
When fear cools, precious metals usually follow.
Why Silver Prices Matter to Hindustan Zinc?
The connection here is straightforward.
Hindustan Zinc is India’s largest producer of silver, manufacturing refined silver with 99.9% purity. Over the past month, the sharp rise in silver prices acted as a tailwind for the stock.
Now, with silver cooling off, the impact is visible on the counter.
Hindustan Zinc Share Price: Recent Performance Snapshot
Despite today’s dip, the stock has delivered strong gains in recent weeks.
Key data points:
- Up nearly 27% in the last one month
- Over 38% higher in 2025 so far
- Market capitalisation: Above ₹2.60 lakh crore
- Price-to-earnings (P/E) ratio: Around 26
The rally largely mirrored the surge in silver prices. As that momentum slowed, the stock naturally followed.
This kind of move is typical in commodity-linked stocks, where price action often tracks the underlying asset closely.
Silver ETFs Also Feel the Heat
The ripple effect didn’t stop at equities. Silver ETFs saw broad-based declines as silver futures corrected.
Notable moves include:
- Aditya Birla Silver ETF: Down over 2%
- Axis Silver ETF: Down more than 2%
- Nippon India, Groww, HDFC, Mirae Asset, Kotak Silver ETFs: Fell close to 2% each
- Zerodha, ICICI Pru, Edelweiss Silver ETFs: Slipped around 1%
ETF prices moved in line with silver’s decline, reflecting the underlying commodity’s pullback.
The Bigger Picture: Stock Market Today
Today’s action was less about negative news and more about digestion.
Silver had rallied sharply.
Hindustan Zinc shares had followed.
Now, the market is adjusting.
For investors tracking Hindustan Zinc share price and commodity trends, this session highlighted how quickly sentiment can shift when prices run ahead of fundamentals in the short term.
Summary
- Hindustan Zinc share price fell nearly 2% in early trade
- Silver prices dropped 7–8% on MCX after hitting record highs
- Profit-booking and easing geopolitical tensions weighed on silver
- Hindustan Zinc, as India’s largest silver producer, felt the impact
- Silver ETFs declined 1–2% across the board
- Despite the dip, the stock remains sharply higher over the past month and in 2025 so far
In the stock market today, this was a classic case of momentum cooling after a strong run — nothing dramatic, just markets doing what they do best.
Source: Moneycontrol
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