Mumbai: Hindustan Zinc Shares jumped sharply on Wednesday, December 24, as global silver prices touched a historic milestone. The stock rose 3.6 percent to an intraday high of Rs 632 on the BSE, reflecting strong investor interest following the rally in silver markets.
The rise in the stock comes as silver prices crossed the USD 72 per ounce mark for the first time ever, boosting sentiment around companies linked to silver production.
Silver Outperforms Other Assets in 2025
Silver has delivered a stunning performance in 2025, gaining more than 140 percent so far in the year. This makes it one of the best-performing asset classes, far ahead of many equities and commodities.
Experts say the rally is being supported by a mix of factors, including rising industrial demand, safe-haven buying by investors, and limited global supply. Growing uncertainty around global geopolitics has also pushed investors towards precious metals like silver.
Domestic Prices Hit Record Highs
The rally is not limited to global markets. In India, MCX silver futures also touched new all-time highs. Prices climbed to Rs 2,20,490 per kilogram, reflecting strong domestic demand and global price trends.
Silver has now crossed its earlier inflation-adjusted peak seen in 1980. Demand from sectors such as solar power, electric vehicles, and electronics has played a major role in pushing prices higher. Expectations of easier U.S. monetary policy in 2026 have further supported the rally.
Why Hindustan Zinc Stands to Gain?
Hindustan Zinc is among the top five silver producers in the world, with a production capacity of around 800 tonnes. Nearly 38 percent of the company’s earnings before interest and tax come from silver, making it a key beneficiary of rising prices.
Global brokerage firm Jefferies expects Hindustan Zinc’s earnings to improve further. The firm projects earnings per share growth of 22 percent in FY26 and 29 percent in FY27, helped by strong silver prices and low zinc mining costs.
Outlook Remains Positive
Market analysts believe that continued strength in silver prices could remain a major earnings driver for Hindustan Zinc in the coming years, keeping investor interest strong.
Disclaimer: The opinions, views, and recommendations shared by experts are based on their personal assessments. They are meant only for information purposes and do not reflect the official views or position of The Free Press Journal. Readers are advised to use their own judgement before making any decisions.
