Shares of Hindustan Zinc fell around 2 percent after silver prices witnessed a sharp 8 percent correction, following a strong record-breaking rally in recent weeks. The decline in silver also triggered outflows from silver exchange-traded funds (ETFs), adding to the pressure on silver-linked stocks.
Despite the short-term correction, Hindustan Zinc has delivered a strong performance on the bourses. The stock has surged nearly 27 percent over the past one month and is up more than 38 percent so far in 2025, supported by rising precious metal prices and improved market sentiment earlier in the year.
Silver prices had recently touched record highs on the back of strong industrial demand expectations, especially from clean energy, electric vehicles, and data centre-related infrastructure. However, profit-booking at elevated levels, along with global market volatility, led to a sharp pullback.
Market participants say that while near-term volatility in silver prices may impact sentiment, long-term fundamentals for silver remain constructive, which could continue to support companies like Hindustan Zinc. Investors will also keep a close watch on global commodity trends, ETF flows, and macroeconomic cues to assess the next direction for the stock.
