Mumbai: Shares of Hindustan Zinc Ltd., a subsidiary of Vedanta Ltd., surged nearly 5% on Monday, snapping a three-day losing streak, as global silver prices touched fresh record highs. The stock emerged among the top gainers on the Nifty 500 index, buoyed by strong investor interest and robust trading volumes.
Hindustan Zinc, ranked among the world’s top five silver producers, is currently India’s only listed avenue for investors seeking exposure to the precious metal. Despite a production slump in FY25, the company has guided for a recovery in FY26, targeting silver output of 700 tonnes. This optimism comes as global silver markets continue a sharp upward trajectory, with prices breaching the $40 per ounce mark, registering over 35% gains in the past year and more than 5% in the last month alone.
Domestic markets have mirrored the global surge. On the Multi Commodity Exchange (MCX), silver futures scaled record highs, adding momentum to Hindustan Zinc’s stock performance. Trading activity was especially robust, with nearly 40 lakh shares changing hands significantly higher than the 20-day average of 6 lakh helping the stock break above its 50-day moving average of ₹433. By Monday’s close, Hindustan Zinc was trading at ₹435.8, up 3.9%, almost wiping out its year-to-date losses.
The rally comes against the backdrop of growing recognition of silver’s strategic importance. The U.S. Geological Survey has proposed adding silver to the Critical Minerals list, citing its rising demand across industries, from clean energy to electronics. Analysts note that this development could further fuel global demand, tightening supply and pushing prices higher in the coming years.
Hindustan Zinc’s management has also expressed confidence in the market outlook. In a recent interaction with CNBC-TV18, company executives projected silver prices could climb to $41–42 per ounce by 2026, while also hinting at possible value-unlocking plans in the same timeframe.
Ownership patterns continue to keep the stock tightly held, with Vedanta maintaining a 61.84% stake and the Indian government holding close to 28%, leaving relatively limited free float for retail investors. This limited availability, coupled with strong demand, has often amplified price movements in the counter.
With silver prices showing no signs of cooling and Hindustan Zinc signaling production recovery, market watchers expect the stock to remain firmly on investors’ radar, both as a strategic play on silver and as a reflection of India’s broader mining sector outlook.