Hindustan Zinc shares fall 6% as silver prices drop sharply
The sharp pullback has dragged silver below key moving averages, pointing to short-term bearish pressure and an ongoing correction, even as the longer-term trend remains positive, said Ponmudi R, CEO of Enrich Money.
- Feb 5, 2026,
- Updated Feb 5, 2026 10:47 AM IST
Shares of Hindustan Zinc snapped their three-day winning streak on Thursday, slipping nearly 6 per cent in early trade. The sharp decline mirrors a crash in the prices of silver, a key commodity for the Vedanta Group subsidiary.
At 9:49 am, Hindustan Zinc stock was trading 5.67 per cent lower at Rs 602.90 on the BSE, down from its previous close of Rs 639.15. The counter had been running upward over the last three sessions.
Tracking a plunge in the international market, silver prices on the MCX witnessed extreme volatility on Thursday.
MCX Silver March futures opened gap-down at Rs 2.58 lakh per kg, lower than the previous close of Rs 2.68 lakh per kg. The white metal slipped as much as to a day’s low of Rs 2.44 lakh per kg, marking a sharp reversal from the surge seen on Wednesday.
Silver prices are currently hovering in the Rs 2,50,000–Rs 2,60,000 range after retreating sharply from the peak near Rs 4,20,000. The sharp pullback has dragged silver below key moving averages, pointing to short-term bearish pressure and an ongoing correction, even as the longer-term trend remains positive, said Ponmudi R, CEO of Enrich Money.
According to the company's investor presentation for the third quarter of FY26, Hindustan Zinc is India's only integrated and listed silver company.
The company earlier said that the precious metal segment is contributing significantly to profitability, accounting for 44 per cent of its profits, while base metals make up the remaining 56 per cent. In the third quarter alone, the company reported a silver production of 158 MT, which was up 10 per cent quarter-on-quarter.
Highlighting silver's crucial role in achieving the net zero world, the company noted that demand is being driven by industrial applications, particularly in solar panels, electric vehicles, and electronics.
“Strong buying interest is evident in the Rs 2,35,000–Rs 2,50,000 support band, aligned with prior swing lows and longer-term structural support. A sustained hold above this base, followed by a decisive recovery, could revive upward momentum toward Rs 3,00,000–Rs 3,25,000 in the coming periods,” Ponmudi said.
On the technical front, data from Trendlyne suggests that Hindustan Zinc’s relative strength index (RSI) stands at 50.8, indicating that the stock is neither in the overbought nor oversold territory.
Despite the day's fall, the share price remains above the 50-day simple moving average and the 200-day SMA.
Shares of Hindustan Zinc snapped their three-day winning streak on Thursday, slipping nearly 6 per cent in early trade. The sharp decline mirrors a crash in the prices of silver, a key commodity for the Vedanta Group subsidiary.
At 9:49 am, Hindustan Zinc stock was trading 5.67 per cent lower at Rs 602.90 on the BSE, down from its previous close of Rs 639.15. The counter had been running upward over the last three sessions.
Tracking a plunge in the international market, silver prices on the MCX witnessed extreme volatility on Thursday.
MCX Silver March futures opened gap-down at Rs 2.58 lakh per kg, lower than the previous close of Rs 2.68 lakh per kg. The white metal slipped as much as to a day’s low of Rs 2.44 lakh per kg, marking a sharp reversal from the surge seen on Wednesday.
Silver prices are currently hovering in the Rs 2,50,000–Rs 2,60,000 range after retreating sharply from the peak near Rs 4,20,000. The sharp pullback has dragged silver below key moving averages, pointing to short-term bearish pressure and an ongoing correction, even as the longer-term trend remains positive, said Ponmudi R, CEO of Enrich Money.
According to the company's investor presentation for the third quarter of FY26, Hindustan Zinc is India's only integrated and listed silver company.
The company earlier said that the precious metal segment is contributing significantly to profitability, accounting for 44 per cent of its profits, while base metals make up the remaining 56 per cent. In the third quarter alone, the company reported a silver production of 158 MT, which was up 10 per cent quarter-on-quarter.
Highlighting silver's crucial role in achieving the net zero world, the company noted that demand is being driven by industrial applications, particularly in solar panels, electric vehicles, and electronics.
“Strong buying interest is evident in the Rs 2,35,000–Rs 2,50,000 support band, aligned with prior swing lows and longer-term structural support. A sustained hold above this base, followed by a decisive recovery, could revive upward momentum toward Rs 3,00,000–Rs 3,25,000 in the coming periods,” Ponmudi said.
On the technical front, data from Trendlyne suggests that Hindustan Zinc’s relative strength index (RSI) stands at 50.8, indicating that the stock is neither in the overbought nor oversold territory.
Despite the day's fall, the share price remains above the 50-day simple moving average and the 200-day SMA.