Last Updated:
Shares of Hindustan Zinc slipped nearly 2% on January 7 after silver prices corrected sharply following a strong recent rally
Hindustan Zinc Shares
Shares of Hindustan Zinc slipped nearly 2 per cent on January 7 after silver prices corrected sharply following a strong recent rally. Silver exchange-traded funds (ETFs) also declined, tracking the intraday fall in the precious and industrial metal.
Hindustan Zinc shares were trading at Rs 632.60 apiece on Wednesday. The company is India’s largest producer of silver and manufactures refined silver with a minimum purity of 99.9 per cent.
Silver futures with March expiry on the Multi Commodity Exchange of India (MCX) fell close to 3 per cent to Rs 2,51,729 per kilogram. The contracts had earlier touched a fresh lifetime high of Rs 2,59,692 per kg during the session.
May-expiry silver futures declined 2.5 per cent to Rs 2,58,566 per kilogram, giving up earlier gains after hitting record highs, while July-expiry contracts dropped over 2 per cent to Rs 2,65,028 per kilogram. Overall, silver futures across maturities have corrected by around Rs 8,000 per kilogram from their intraday lifetime highs.
In the spot market, silver fell 3.5 per cent to USD 78.43 per ounce, retreating from an all-time high of USD 83.62 recorded on December 29.
The sharp decline is largely attributed to profit-booking after the recent surge, with a firmer US dollar also weighing on sentiment across precious metals ahead of key US jobs data due later this week.
Silver ETFs mirrored the price correction. The 360 ONE Silver ETF fell about 2 per cent, while Axis Silver ETF, Tata Silver ETF, SBI Silver ETF and HDFC Silver ETF trimmed earlier gains and were trading marginally higher. Nippon India Silver ETF, UTI Silver ETF, ICICI Prudential Silver ETF, Motilal Oswal Silver ETF, Zerodha Silver ETF and others were up over 0.5 per cent, also erasing most of their intraday gains.
Despite the day’s decline, Hindustan Zinc shares have gained nearly 3 per cent over the past five sessions and are up more than 29 per cent in the last one month. The stock has rallied around 45 per cent over the past six months.
What should investors do?
Silver remains more volatile than gold and is showing bubble-like behaviour, according to Aggarwal of VSRK Capital. “Entry strategies can be planned once prices stabilise near support zones and market sentiment improves, but investors should note that metals often remain choppy for years after a sharp rally,” he said.
Looking ahead to 2026, the medium-term outlook for silver remains constructive, said Harshal Dasani, Business Head at INVasset PMS. He noted that strong structural industrial demand from electronics, solar and electrification, combined with persistent supply constraints, has kept the market in deficit.
“Silver turned into a momentum trade in 2025, rising sharply through the year, which made it vulnerable to profit-booking and leveraged unwinds once sentiment shifted. Gold also delivered outsized gains, so even routine corrections appear severe after such strong runs,” Dasani added.
In the near term, price direction is expected to be driven by movements in the US dollar and real interest rates. Higher yields typically pressure non-yielding assets like gold and silver, while softer yields and risk aversion tend to restore their appeal, the analyst said.
Click here to add News18 as your preferred news source on Google.
January 07, 2026, 2:38 PM IST
Read More
Source link
[ad_3]
