Hindustan Zinc shares rise 3% as silver crosses Rs 1.05 lakh per kg mark for the first time

Hindustan Zinc is the largest producer of silver in India

The shares of Hindustan Zinc jumped nearly 3 percent on June 6 on signs that the bullish momentum in silver prices may be showing signs of further strength, sending the stock to a five-month high in early trade.

Silver's future contracts with July expiry on the Multi Commodity Exchange (MCX) opened at a lifetime high of Rs 1,05,316 per kg. It has crossed the Rs 1.05 lakh per kg-mark for the first time ever, breaking the previous lifetime record of Rs 1.04 lakh per kg, which was set just the day before.

In the domestic markets, the price of silver jumped Rs 3,000 per kg in just one day to stand at around Rs 1.07 lakh per kg, according to Good Returns.

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.

The rise in the silver prices comes on the back of ongoing global geopolitical tensions. "After underperforming against gold, silver has suddenly attracted interest from investors, catching up to Gold's pace. US President Donald Trump and Chinese leader Xi Jinping agreed to further talks to settle trade disputes. President Trump said on social media that the talks focused primarily on trade led to "a very positive conclusion, however Chinese officials had a different opinion. Meanwhile, after a lower private payroll data, weekly U.S. jobless claims increased for a second straight week," said Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services.

"The escalation of geo-political tensions between Russia-Ukraine is leading investors to place their bets on precious metals like gold and silver," said Prathamesh Mallya from Angel One.

"Silver has rallied in the international markets from lows of around $32.76/ounce on 30th May 2025, to around highs of $34.78 on 2nd June 2025, a rally of around 6 percent. On the MCX, silver futures have rallied from lows of Rs. 96742/kg on 30th May 1015 to highs of Rs.101350/kg as on 3rd June, a rally of around 5 percent … Continued escalation of war between Russia-Ukraine will lead to further rally in silver in the near term and MCX futures might soon move higher towards Rs.1,06,000/kg mark. Traders are advised caution as volatility will be key going forward," Mallya further said.

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While rising silver prices have boosted the stock, US President Donald Trump's tariffs continues to keep the investors on the edge. Hindustan Zinc shares have gained over 22 percent in the past one month, but dropped nearly 27 percent in the past one year.