Shares of Hindustan Zinc rose sharply on Wednesday, gaining over 3 percent to touch a new 52-week high. The stock climbed to around Rs 587 on the BSE, driven by a strong rally in silver prices in both domestic and global markets. With this rise, the stock has gained nearly 30 percent in the last one month and has ended higher in six of the last seven trading sessions.
The main reason for the surge in Hindustan Zinc’s share price is the historic jump in silver futures. On the Multi Commodity Exchange (MCX), silver futures for March delivery crossed Rs 2.05 lakh per kilogram for the first time ever. Other contracts for May and July also touched record highs, crossing Rs 2.08 lakh and Rs 2.12 lakh per kg respectively. In the international market, spot silver prices moved above $66 an ounce, reflecting strong global demand.
Experts say silver prices are rising due to a mix of factors. These include growing industrial demand, increased investor interest in precious metals, and overall strength in commodity markets. Unlike gold, silver is widely used in industries such as electronics, solar energy and electric vehicles, which adds to its demand during periods of economic expansion.
Hindustan Zinc, part of the Vedanta Group, is India’s largest producer of refined silver with 99.9 percent purity. Higher silver prices directly improve the company’s revenue potential and profit outlook, making the stock more attractive to investors. The company is also a leading producer of zinc and lead, which further supports its long-term business prospects.
With silver trading at record levels, Hindustan Zinc is expected to remain in focus, especially if commodity prices stay firm in the coming weeks.
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