Hindustan Zinc shares rise 2% as silver prices jump, silver ETFs climb 3%

Hindustan Zinc share price

• Hindustan Zinc shares up 2% as silver prices surge amid market uncertainty
• Silver ETFs surged, reflecting the sharp increase in silver prices and futures.
• Analysts urge caution; silver stays volatile despite positive medium-term outlook.

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The shares of Hindustan Zinc rose more than 2 percent on January 6 as silver prices jumped amid geopolitical uncertainties. Silver ETFs also surged, mirroring the sharp rise in the precious and industrial metal.

Hindustan Zinc shares rose to Rs 643.65 apiece in the early trading hours of Tuesday. The company 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.

Silver prices:

Silver prices surged above the $79/oz mark, and is now just 6 percent away from new record high territory. This marks a 9 percent rise since the US captured Venezuela's President Maduro.

Silver futures with March expiry on the Multi Commodity Exchange of India (MCX) rose nearly 2 percent to Rs 2,50,723 per kilogram, while futures with May expiry also rose 2 percent to Rs 2,56,800 per kilogram, nearing lifetime highs.

The future contracts with July and September expiries meanwhile jumped over 2 percent to hit fresh all-time highs of Rs 2,63,300 per kilogram and Rs 2,70,036 per kilogram, respectively.

Silver ETFs:

Silver exchange traded funds (ETFs) mirrored the sharp rise in silver prices. Mirae Asset Silver ETF, Aditya Birla Sun Life Silver ETF and DSP Silver ETF rose nearly 3 percent each, while Nippon India Silver ETF, Kotak Silver ETF, UTI Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, Zerodha Silver ETF, SBI Silver ETF, Axis Silver ETF, Motilal Oswal Silver ETF, Tata Silver ETF, Groww Silver ETF and others meanwhile grew more than 2 percent each.

What should investors do?

Silver shows higher volatility than gold showing a bubble-like behavior, Aggarwal from VSRK Capital said. "Strategy entry can be planned when prices stabilise near support zones with market sentiment improving but consider that metals tend to remain choppy for years after a strong rally," he added.

Looking ahead to 2026, the medium-term outlook remains constructive, especially for silver, Harshal Dasani, Business Head, INVasset PMS said, adding that the structural industrial demand linked to electronics, solar and electrification remains strong, while supply constraints have persisted for several years, keeping the market in deficit.

"Silver, in particular, had become a momentum trade in 2025, rising sharply over the year, which made it vulnerable to profit-booking and leveraged unwinds once sentiment turned. Gold, too, delivered outsized gains over the past year, so even routine corrections appear severe when they follow such a strong run," Dasani said.

In the near term, price direction will continue to be influenced by the US dollar and real interest rates—any repricing toward higher yields tends to pressure non-yielding assets like gold and silver, while softer yields and risk aversion restore their appeal, according to the analyst.

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