Shares of Hindustan Zinc climbed around 3 percent in early trade as silver futures surged to a fresh all-time high of nearly ₹2.64 lakh per kg on the domestic commodities exchange. The sharp rally in silver prices also lifted silver exchange-traded funds (ETFs), which gained up to 4 percent during the session.
Why Hindustan Zinc gained
Hindustan Zinc is India’s largest producer of silver, making its earnings sensitive to movements in silver prices. The recent spike in futures has strengthened expectations of higher realizations and improved profitability for the company. Market participants said sustained strength in precious metals could support margins, especially as silver prices have significantly outperformed over the past year.
Silver’s strong rally continues
Silver prices have been on a powerful uptrend, driven by a combination of safe-haven demand, tight global supply, and strong industrial usage, particularly from sectors such as solar energy, electronics, and electric vehicles. Heightened geopolitical uncertainties and expectations of easier global monetary policy have further boosted investor interest in precious metals.
Silver ETFs deliver stellar returns
Reflecting the rally in spot and futures prices, silver ETFs have posted exceptional gains. According to market data, silver ETFs have delivered returns of up to 176 percent over the past one year, making them among the best-performing commodity-linked investment products in 2025.
Outlook
Analysts believe silver may remain volatile in the near term but see structural support from industrial demand and investment flows. For Hindustan Zinc, continued firmness in silver prices could act as a near-term catalyst for the stock, though investors are advised to track commodity price movements closely, given their impact on earnings.
