The shares of Hindustan Zinc erased all early gains to trade in the red on October 14 after silver prices saw some correction after hitting fresh lifetime high levels earlier during the day.
The stock dropped more than 1 percent to hit an intraday low of Rs 499.80 apiece.
Silver sees profit booking after hitting lifetime high levels:
Silver futures saw some profit booking after hitting all-time high levels. Silver futures with December expiry on the Multi Commodity Exchange of India (MCX) hit Rs 1,62,700 per kilogram for the first time ever. The contracts then fell more than 5 percent to Rs 1,54,111 per 10 grams.
Silver futures with March, May and July expiries also hit fresh all time high levels, but saw significant correction later during the day.
Why are Hindustan Zinc shares falling?
Hindustan Zinc is the largest producer of silver in India. Earlier during the day, when the prices were at record high levels, the stock gained over 4 percent to trade at Rs 525.80 apiece. It then erased all losses and dropped further, falling over 1 percent to Rs 499.80 apiece.
This means that the stock has plunged nearly 5 percent intraday.
Hindustan Zinc share price history:
Hindustan Zinc shares have gained nearly 2 percent in the past five days, and over 9 percent in the past one month. The stock surged 16 percent in the past six months, and over 13 percent in 2025 so far. Its P/E ratio currently stands at over 20.
The stock has recovered more than 32 percent after hitting a 52-week low of Rs 378.15 per share in March this year. The stock is however down over 13 percent from its 52-week high of Rs 575.40 apiece, which it had hit in October last year.
What lies ahead for silver:
Despite the latest profit booking, analysts remain optimistic about silver's rise. "Silver has surged sharply as investors rotate out of the dollar into tangible assets, reflecting mounting apprehension over U.S. fiscal stability and the autonomy of the Federal Reserve. Supply constraints have intensified, with robust shipments to the United States amid concerns of potential import tariffs draining London inventories to multi-year lows. In India, the world's largest consumer of silver, prices are trading at a steep premium of up to 10% - 15% over global benchmarks, driven by robust investment and festival-related demand, prompting physically backed ETFs to halt new subscriptions. Industrial and investment demand continues to outpace supply," said Riya Singh – Research Analyst, Commodities and Currency, Emkay Global Financial Services.
"Absent a stabilizing central bank bid, even modest reductions in investment inflows could trigger sharp corrections, unwinding the London tightness that has underpinned the recent rally. Silver is likely to maintain its upward trajectory toward 165,000–185,000–194,639 levels domestically, while on the international front, it could test $56–$58–$59.89. Key support is seen around 153195 - 150,000 locally and $51.85 -$50 globally," she added.
Also read: Our LIVE blog on stock market updates
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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