Shares of Hindustan Zinc rose around 2 percent in early trade on Tuesday, tracking a sharp uptick in silver prices. The stock climbed to about Rs 643.65 per share, as renewed interest in precious metals lifted sentiment across silver-linked stocks and ETFs.
Hindustan Zinc benefited from the rally as it is IndiaтАЩs largest producer of silver, manufacturing refined silver with a minimum purity of 99.9 percent. Rising silver prices typically improve the companyтАЩs realisations and earnings outlook, making the stock sensitive to movements in the global bullion market.
Meanwhile, silver ETFs surged up to 3 percent, reflecting strong investor demand amid expectations of sustained momentum in precious metals. Market participants cited factors such as global macro uncertainty, expectations of easier monetary conditions, and safe-haven buying as key drivers behind the silver rally.
Analysts note that continued strength in silver prices could support Hindustan ZincтАЩs near-term performance, though movements in base metal prices and global cues will remain important to watch.
