Hindustan Zinc Shares Hit 16-Month High as Silver Rally Boosts Earnings Outlook

Shares of Hindustan Zinc climbed 3.5% on Wednesday to ₹587.50, marking their highest level in nearly 16 months, as a sharp rally in silver prices lifted investor sentiment around the metal major.

The stock opened higher at ₹580 and extended gains through the session, even as benchmark equity indices remained under pressure for a third straight day. Hindustan Zinc has emerged as one of the strongest performers this month, with the stock gaining 19% in December so far and rising around 30% in 2025.

The rally has significantly boosted the company’s market capitalisation to about ₹2.43 lakh crore, with nearly ₹55,000 crore added in value since the start of the year.

Silver Prices Touch Record Highs

The surge in Hindustan Zinc shares comes amid a strong global rally in silver prices. Spot silver rose 2.8% to a record $65.63 per ounce, crossing the $65 mark for the first time.

In the domestic market, March silver futures on the MCX jumped 4.2% to a fresh all-time high of ₹2,06,111 per kilogram, taking the metal’s year-to-date gains to 134%, nearly double that of gold over the same period.

What Is Driving Silver Higher?

Silver prices have been supported by expectations of further monetary easing in the United States after recent data showed the U.S. unemployment rate rising to 4.6% in November, its highest level since September 2021. The data strengthened expectations that the U.S. Federal Reserve may cut interest rates as early as January.

A softer U.S. dollar also aided the rally, as weaker dollar levels tend to boost demand for precious metals among global investors. Following the jobs data, markets briefly priced in a higher probability of a January rate cut, while expectations of a policy pause eased marginally.

Why Hindustan Zinc Stands to Gain

Rising silver prices are particularly beneficial for Hindustan Zinc, as silver contributed around 40% of the company’s profitability in the September quarter.

Brokerage firm B&K Securities expects silver prices to remain above $50 per ounce through FY26 and projects silver’s share in Hindustan Zinc’s EBITDA to rise to 42% in FY27, compared with 28% in FY25. The brokerage has initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹610.

Global brokerage Jefferies has also initiated coverage with a ‘Buy’ recommendation, assigning a higher target price of ₹660 per share, citing the company’s strong leverage to rising silver and zinc prices.