Hindustan Zinc shares fall 6% intraday as silver prices drop up to 10% from lifetime highs

Hindustan Zinc share price

The shares of Hindustan Zinc sharply fell more than 6 percent from their intraday high on December 29 as silver prices declined after a sharp surge.

The shares of the Vedanta Group-company erased all morning gains and fell more than 3 percent to snap a four-session losing streak. This came after the stock hit a fresh 52-week high of Rs 656.35 earlier during the day.

Hindustan Zinc shares dropped more than 6 percent intraday to hit a low of Rs 614.15 apiece, before recovering some minor losses to close at Rs 618.15 apiece.

Vedanta shares also dropped over 1 percent, erasing all early gains.

Silver prices decline:

After hitting an all-time high of Rs 2,54,174 per kg, silver futures with March expiry on MCX fell more than 8 percent to Rs 2,33,120 per kg. The futures contracts with May and July expiries also erased all gains, falling 9 percent and 10 percent respectively after hitting fresh lifetime highs during the day.

This comes after the precious and industrial metal saw a record bull run. "A combination of profit-taking and seemingly productive talks between Trump and Zelensky regarding a potential peace deal have put gold, silver on the back foot," said KCM Trade Chief Market Analyst Tim Waterer, as quoted by Reuters. "Rate cuts and a continuation of robust industrial appetite paired with supply shortages could have silver primed for a run towards $100 in 2026," Waterer added.

The recent surge in Hindustan Zinc shares was mostly driven by the sharp rise in silver prices. Hindustan Zinc is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity.

Hence, the intraday fall in silver prices may have impacted Hindustan Zinc’s share price.

Hindustan Zinc share price:

Despite today's fall, Hindustan Zinc shares have gained more than 2 percent in the past five days, and around 24 percent in the past one month. The stock is up around 39 percent in 2025 so far.

It has a P/E ratio of 26, and a market cap of more than Rs 2.61 lakh crore.

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