Hindustan Zinc share price witnessed a sharp sell-off in Thursday’s session, January 8, falling over 6% to 588.35 apiece on the NSE, marking its worst single-day crash in six months.
The decline came as silver prices retreated sharply from recent highs, along with other metals, which appeared to impact investor sentiment towards the metal pack following a spectacular bull run in 2025.
Overall, all constituents of the metal index traded with cuts today, amid a sharp 3.5% plunge in the Nifty Metal index, with Hindustan Zinc as the top loser.
Hindustan Zinc share price opened the session lower at 623; the pressure intensified as the day progressed, sending it to the lowest level since June 18. Considering today’s low, the stock has lost 8.5% of its value in just two trading sessions and has also erased its early 2026 gains, causing it to trade 3.4% lower in January so far.
The drop in silver prices will potentially impact the company’s operating performance, as silver contributed 41% to HZL’s earnings before interest and taxes (EBIT) in H1FY26, up from about 28% in FY23.
Silver prices extend fall to second day
The record-breaking run in silver prices, which powered the stock to a 38% surge in 2025, has cooled off recently amid profit booking by investors, while they also appear to be holding their bets ahead of key US economic data later this week, which will provide cues for US Federal Reserve rate cuts.
After crashing 3.17% on Wednesday, the silver March delivery futures contract on MCX fell another 10,000 per kilogram today, reaching the day’s low of 240,605, ₹18,206 per kilogram”>taking the two-day cumulative drop to 18,206 per kilogram.
From the record peak of 259,322, silver prices are down by 18,717. In the international market, spot silver prices fell as much as 3.4% to $75.5 per ounce. The white metal had hit a record high of $84 in late December.
Though geopolitical tensions continue to remain firm, mixed US economic data offered limited clarity on the Federal Reserve’s policy outlook. The US job openings fell more than expected in November, pointing to cooling labor demand, while private payroll growth in December rebounded by less than anticipated, according to media reports.
Meanwhile, ISM data showed an unexpected improvement in services-sector activity last month.
The mixed economic data also triggered a rally in the US dollar, which rose for the third straight day on Thursday, reaching 98.7, making dollar-priced precious metals more expensive for holders of other currencies.
Investors’ attention has now shifted towards weekly jobless claims due Thursday and the December employment report on Friday for additional clarity on labor market conditions.
Ponmudi R, CEO of Enrich Money, said, “If silver prices hold above 2,48,000– 2,50,000, it will keep the upside momentum intact. A decisive breakout above 2,52,000- 2,55,000 could trigger a swift rally towards 2,60,000- 2,70,000.”
“The key accumulation zone remains 2,45,000– 2,48,000, highlighting silver’s role as a high-beta outperformer within the precious metals complex,” he further added.
MCX silver posted gains of nearly 170.2% in 2025, propelled by strong industrial demand, its recent classification as a US critical mineral, and mining disruptions in silver-rich nations, leading to a massive surge in prices.
Disclaimer, This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
