Hindustan Zinc Share Price Falls 7% as Silver Prices Crash Sharply

Hindustan Zinc share price (NSE: HINDZINC) dropped nearly 7% to around ₹594 on February 5, ending a 3-day gaining streak. The fall came as silver prices saw a sharp correction in domestic and global markets.

Hindustan Zinc is one of India’s largest silver producers, so changes in silver prices directly affect investor sentiment and expectations about the company’s earnings.

Hindustan Zinc Past Rally, Recent Correction

The stock had performed strongly earlier, rising about 38% in the previous year. However, it has now fallen roughly 18% from its 52-week high as the rally in silver prices slowed down in recent weeks.

Sharp Fall in Silver Prices

Silver prices dropped heavily in futures markets:

• MCX silver fell about 9% to nearly ₹2.45 lakh.
• COMEX silver declined more than 16%.

This came after a huge rally in 2025, when silver prices had surged over 170% due to strong industrial demand, limited supply, and investor interest.

Higher margin requirements in futures trading also forced investors to exit leveraged positions, increasing selling pressure.

Conclusion

Hindustan Zinc’s sharp share price fall highlights how closely the company is tied to silver price movements. While short-term volatility may continue, long-term demand for silver and industry fundamentals could still support the company’s outlook.

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