Stock Gains Momentum for Third Consecutive Day
Hindustan Zinc shares continued their upward trajectory for the third straight session, climbing over 4 percent, fueled by silver reaching record highs following the US Federal Reserve’s interest rate cut. On Thursday, the stock hit Rs 532 per share, marking the highest level in nearly six months. Over the past three days, the stock has surged approximately 9 percent.
Vedanta Shares Follow the Uptrend
The rally in Hindustan Zinc also benefited its promoter, Vedanta. Vedanta shares rose nearly 2 percent, trading at Rs 534.50 during Thursday morning sessions, reflecting positive investor sentiment in the metals sector.
Silver Hits Record Levels
On December 11, silver prices reached unprecedented highs. March silver futures rose about 2.5 percent to Rs 1,93,452 per kilogram, while May futures touched Rs 1,95,899 per kilogram for the first time ever. In the spot market, silver traded around $62 per ounce, surpassing the $60 mark for the first time just a day prior.
Impact of Federal Reserve Rate Cut
The sharp rise in silver prices came after the US Federal Reserve announced a 25-basis-point interest rate cut. According to Ravi Singh, Chief Research Officer at Master Capital Services, “These metals typically perform well when rates fall because the dollar weakens and real cash returns decline. The Fed’s move creates a favorable environment for both Indian markets and precious metals in the short term.”
Hindustan Zinc: A Silver Production Powerhouse
Hindustan Zinc, India’s largest silver producer, manufactures refined silver with a minimum purity of 99.9 percent. The surge in bullion prices is expected to further strengthen the company’s stock performance.
Recent Performance and Valuation
Over the past five days, Hindustan Zinc shares have gained around 6 percent, while monthly gains exceed 7 percent. Year-to-date, the stock has risen more than 18 percent in 2025. The company currently holds a price-to-earnings (P/E) ratio above 21 and a market capitalization exceeding Rs 2.20 lakh crore.
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