Hindustan Zinc’s stock surged on Friday, reaching its highest level in a year as silver prices kept climbing.
What drove the stock higher?
The shares opened with a 3.22% gap up and climbed to an intraday high of Rs 646.50 on the NSE, matching the company’s 52‑week peak. Over the last four trading days the stock has risen steadily, and it’s up almost 36% in the past month.
Silver prices hit fresh records
Silver futures on the Multi Commodity Exchange jumped 4% to a new all‑time high of Rs 2,32,741 per kilogram. The March 2026 contract has risen more than 14% since mid‑December, pushing the metal above the $75‑per‑ounce mark in global markets.
Why is silver climbing?
- Geopolitical tension: Ongoing conflicts such as the Russia‑Ukraine war, US actions against ISIS in Nigeria, and the US blockade of Venezuelan oil shipments have increased demand for safe‑haven assets like silver.
- Expectations of lower US rates: Investors are pricing in two quarter‑point rate cuts by the Federal Reserve next year, which makes non‑interest‑bearing assets more attractive.
- Cooling inflation: Slower price growth and a softer labor market add to the bullish sentiment for precious metals.
What should investors keep an eye on?
Hindustan Zinc benefits directly from higher silver prices because it is a major silver producer. If the metal continues its upward trend, the company’s earnings could improve, supporting the stock price. However, watch for any sudden changes in global politics or US monetary policy that could reverse the safe‑haven demand.
Remember, this is just an overview, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.