Hind Zinc shares jump 3% to 16-month high as silver futures cross Rs 2.05 lakh/kg for first time

The shares of Hindustan Zinc jumped more than 3.5 percent to hit a fresh record high on December 17 on soaring silver prices. The shares of the Vedanta Group company have now recorded gains in six out of seven consecutive sessions.

Hindustan Zinc shares hit a new 52-week high of Rs 587.80 apiece in the morning trading hours of Wednesday, breaking the previous record just set yesterday. Notably, this is the highest level seen by the stock since August 2024.

The shares of the company have now surged more than 29 percent in less than a month.

Soaring silver prices:

Silver futures with March expiry jumped more than 4 percent to hit a fresh lifetime high of Rs 2,05,934 per kilogram today. This marks the first time these contracts have crossed the key Rs 2.05 lakh-mark. Silver futures with May and July expiry also hit fresh all-time highs of Rs 2,08,796 per kg and Rs 2,12,334 per kg respectively today.

Globally, spot silver surged to a record high of more than $66 an ounce, marking the first time it has crossed the $65 milestone level.

"While gold remains the primary hedge for Indian investors, silver is increasingly behaving like a leveraged play on both global growth and the energy transition. Its dual role as a monetary and industrial metal makes it particularly sensitive to shifts in interest rates, the dollar, and manufacturing demand," said Rajkumar Subramanian, Head - Product & Family Office, PL Wealth.

In the Indian context, silver is no longer just a tactical trade, the analyst said. "With rising industrial usage and increasing retail participation through ETFs and digital platforms, silver is emerging as a strategic portfolio diversifier - offering higher volatility than gold but also higher upside during commodity upcycles. Silver’s strength is being driven not just by its role as a precious metal, but increasingly by its industrial relevance. From solar manufacturing and EVs to electronics, India’s clean-energy and manufacturing push is structurally raising silver demand, making it a hybrid asset that benefits from both economic growth and periods of global uncertainty," he added.

Why are Hindustan Zinc shares rising?

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. The sharp rise in the bullion's prices is expected to further boost the stock.

Here's what Jefferies said about Hindustan Zinc shares:

Jefferies recently initiated coverage on the shares of Hindustan Zinc with a 'Buy' call and a target price of Rs 660 per share. This implies an upside potential of more than 16 percent over the stock’s previous closing price of Rs 567.70 per share.