Hindustan Zinc’s stock took a steep turn on Thursday, sliding more than 6% as silver prices fell sharply.
What triggered the drop?
The fall came after silver, which makes up a large part of Hindustan Zinc’s earnings, slipped from its recent highs. The metal’s price drop pulled down the whole metal index, with the Nifty Metal index down about 3.5%.
How much did the share lose?
- Opened at ₹623, closed at ₹588.35 – a fall of over 6%.
- Lowest level since June 18.
- Loss of about 8.5% over two trading days, erasing early‑2026 gains.
Silver’s role in Hindustan Zinc’s earnings
Silver contributed around 41% of the company’s earnings before interest and taxes (EBIT) in the first half of FY26, up from roughly 28% in FY23. When silver prices dropped, it put pressure on the company’s profit outlook.
Why is silver falling?
After a record‑setting rally in 2025, investors are taking profits and waiting for U.S. economic data that could signal Federal Reserve rate cuts. The March silver futures on the MCX fell another ₹10,000 per kilogram, a two‑day drop of ₹18,206.
Internationally, spot silver fell about 3.4% to $75.5 an ounce, down from a December high of $84.
What analysts are saying
Anshul Jain, head of research at Lakshmishree, notes that the stock’s recent 44% surge in under five weeks may be exhausted. He sees the price testing a support level around ₹564 and warns of a possible deeper pullback toward the ₹520 area if selling pressure continues.
What should investors watch?
- Upcoming U.S. jobless claims and the December employment report for clues on the labor market.
- Further movements in silver and other metal prices.
- Trading volumes – a rise above the 50‑day average could signal stronger bearish sentiment.
Disclaimer
Remember, this is just an overview, not a prediction. Do your own research or talk to a certified financial advisor before making any investment decisions.