Hindustan Zinc shares experienced a surge on Monday, January 19, 2026, mirroring the record-breaking rally in silver prices. The stock climbed as silver futures reached an all-time high of ₹3,01,315 per kilogram on the Multi Commodity Exchange (MCX).
Stock Market Performance
Hindustan Zinc's shares opened with significant gains, hitting an intraday high of ₹662.25, a 3.84% increase from previous levels. This surge aligns with the strong performance of silver in the commodity markets. On the National Stock Exchange (NSE), the shares were up by 3.17%, trading at ₹657.95 apiece.
Silver's Record-Breaking Surge
Silver prices witnessed a historic climb, with March silver futures on the MCX rising by ₹13,553, or 4.71%, to reach ₹3,01,315 per kilogram. In the international market, the March silver futures contract also jumped by USD 5.81, or 6.56%, reaching USD 94.35 per ounce. This surge reflects robust industrial demand and strong investor interest, with silver outperforming gold in recent sessions.
Silver ETFs Reach New Heights
The rise in silver prices has fueled increased investment in silver-backed products, with silver ETFs across various platforms recording gains of 3-5%. The iShares Silver Trust (SLV) has also hit a new all-time high in 2026. Over the past year, silver ETFs have delivered returns of nearly 188%, while gold ETFs have gained over 80%.
Hindustan Zinc's Position
Hindustan Zinc, a subsidiary of Vedanta, is the only pure-play silver company in India. As one of the world's top silver producers, with an annual capacity of around 800 tonnes, the company is poised to benefit significantly from the current price rally. Silver contributes approximately 38% to the company's EBIT, making it a key earnings driver.
Market Factors and Expert Recommendations
The surge in silver prices has been driven by safe-haven demand amid escalating geopolitical tensions. Financial analysts recommend a buy-on-dips approach, considering any decline towards the ₹610 – ₹605 zone as a good buying opportunity, with strong support around the ₹578 level. However, experts also caution against new large investments at these elevated prices, suggesting partial profit booking and waiting for corrections.
Cautionary Note
While the long-term outlook for silver remains strong, experts advise caution due to increased short-term risk after the recent price surge. Investors with substantial gains may consider partial profit booking to rebalance their portfolios.
