Hindustan Zinc shares jump 6% as silver futures cross Rs 2.8 lakh/kg; silver ETFs at record highs

Hindustan Zinc share price

• Hindustan Zinc shares jumped over 6 percent as silver prices hit lifetime highs
• Silver futures on MCX surged nearly 5 percent, reaching new all-time highs
• Silver ETFs gained up to 5 percent, mirroring the sharp rise in silver prices

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The shares of Hindustan Zinc jumped more than 6 percent on January 14 as silver prices soared to fresh lifetime highs. Silver ETFs also mirrored the sharp rise in the precious metal, surging up to 5 percent.

Hindustan Zinc shares jumped to Rs 669.75 apiece in the morning trading hours of Wednesday, extending gains for the fourth consecutive session.

Silver soars to lifetime highs:

Silver futures on the Multi Commodity Exchange of India (MCX) jumped around 5 percent to hit a fresh all time high of Rs 2,87,990 per kilogram. Silver futures with May and July expiries also gained around 5 percent each to hit fresh lifetime highs of Rs 2,94,503 per kilogram and Rs 3,01,383 per kilogram, respectively.

The sharp rise in the precious metal came after US inflation data boosted hopes for more rates cuts by the Federal Reserve. The US core Consumer Price Index (CPI) rose 0.2 percent month-on-month and 2.6 percent year-on-year in December, falling short of analysts' expectations of 0.3 percent and 2.7 percent, respectively, according to Reuters.

"We have very low inflation. That would give 'too late Powell' the chance to give us a nice beautiful big rate cut," said US President Donald Trump.

"Powell revealed that he had faced threats of criminal charges linked to his Senate testimony, while former Fed leaders criticized the investigation as political interference, adding to the market’s unease. Geopolitical tensions in Iran also supported precious metals, while gold-silver ratio's drop to 54 aligns with its 50-60 long-term average, hinting at sustained silver outperformance," said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.

Hindustan Zinc share price:

Hindustan Zinc shares have gained more than 10 percent in the past five days, and more than 17 percent in the past one month. The stock jumped around 53 percent in the past six months, amid the sharp rally in silver prices.

The stock currently has a P/E ratio of 25.19. Hindustan Zinc's market capitalization stands at Rs 2.82 lakh crore.

Silver ETFs soar:

Mirroring the sharp rise in silver prices, silver exchange traded funds (ETFs) also jumped. Groww Silver ETF gained around 5 percent to hit a fresh record high. DSP Silver ETF, Tata Silver ETF, Nippon Silver ETF (silverbees), Zerodha Silver ETF and Edelweiss Silver ETF meanwhile gained more than 4 percent each to their respective record highs.

UTI Silver ETF, SBI Silver ETF, HDFC Silver ETF, ICICI Pru Silver ETF, Mirae Asset Silver ETF, Aditya Birla Silver ETF, Motilal Oswal Silver ETF, 360 ONE Silver ETF and Kotak Silver ETF gained nearly 4 percent, while Axis Silver ETF gained over 3 percent.

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