Shares of Hindustan Zinc, a major producer of silver, surged over 4.5% to a fresh record high on Tuesday, January 27, following a sharp spike in the white metal to a new peak today.
Hindustan Zinc share price rallied to a record high of ₹731.10 on the BSE today, as against its last closing price of ₹698.85. The stock is up 17% in January alone, extending its three-year bull run. Hindustan Zinc stock has emerged as a key beneficiary of the surge in precious metals, rising 38% in 2025 amid the best annual run in silver prices in 46 years.
Higher silver prices are positive for companies that produce silver, because their cash flows tend to increase in such a situation. Hindustan Zinc is the world’s third-largest silver producer and the largest integrated silver player in India.
Today’s surge in Hindustan Zinc shares follows a 7% jump in silver rate today to a record high of ₹359,800 per kg on the MCX in the domestic futures market, underpinned by safe-haven demand and taking the month-to-date rise to almost 38%.
Escalating global trade tensions, US President Donald Trump threatened higher tariffs on South Korean auto, lumber, and pharmaceutical imports to 25%, while criticizing Seoul for failing to enact a trade deal with Washington.
This is after he threatened 100% tariffs on Canada if it followed through on a trade deal with China, and a 200% tariff on French wines and champagnes to pressure French President Emmanuel Macron into joining his Board of Peace initiative.
A looming US government shutdown and the Trump administration’s erratic policy moves are also pressuring the US dollar, thereby increasing the lure of silver and gold for buyers of other currencies.
Silver pricing remains key for Hindustan Zinc
Domestic brokerage IIFL Securities said that silver pricing remains key and would be the main driver behind Hindustan Zinc’s EBITDA growth in FY26-28.
“We expect silver to stabilize at higher levels than seen over many decades (US$60/oz). Any stickiness around spot levels for a prolonged period would be an upside risk to cashflows,” the brokerage opined.
IIFL Securities initiated coverage on Hindustan Zinc shares earlier this month with an ADD rating and a target price of ₹712 (which the stock has achieved) following its Q3 results announcement.
The company’s management maintained silver volume guidance at 680 tonnes for FY26 after posting a 46.2% jump in third-quarter profit driven by record-high silver prices, as well as higher zinc prices.
Should you buy Hindustan Zinc shares now?
Technically, Hindustan Zinc stock is showing clear signs of exhaustion after a sharp upmove, opined Anshul Jain, Head of Research at Lakshmishree.
On the weekly chart, the stock is visibly extended, while on the daily timeframe it is trading nearly 6.7 times above its 50-day EMA, highlighting stretched conditions, he said, adding that the current session has printed an open-equals-high candle, a classic short-term bearish signal suggesting supply is emerging at higher levels.
“Momentum indicators are overextended and vulnerable to mean reversion. With price far from its support averages, the risk of profit booking has increased materially,” he cautioned.
According to Jain, a decisive break below 710 would likely trigger accelerated selling pressure, opening an immediate downside towards the 634 zone. Until the stock cools off and moving averages catch up, risk–reward favors caution, with pullbacks expected to be sharper than recent advances, he advised.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
