Hindustan Zinc Share Price Climbs 3% as Silver Hits Fresh All-Time High

Hindustan Zinc shares witnessed a sharp rise on Friday as Silver's price touched a fresh all-time high level of ₹1,04,100 (per kg) this week. Alongside the Vedanta group-owned subsidiary firm, shares of the multi-commodity exchange (MCX) also experienced a strong uptrend on the Bourses.

At 01:00 pm, Hindustan Zinc shares were trading at ₹509.60 price level, up by 3.66% on the National Stock Exchange. Meanwhile, MCX shares climbed over 5% and were trading at ₹7,456 price level.

This stock movement is largely driven by silver’s robust rally in the commodity market. While gold is currently trading in a range-bound zone due to profit-booking, investor interest seems to have shifted to the white metal. Rising geopolitical tensions and escalating trade concerns have further boosted demand for silver.

With silver prices on the rise, both Hindustan Zinc and Vedanta are expected to benefit due to their exposure to the metal. However, analysts prefer to capitalise on this trend through Vedanta, citing a more favorable risk-reward profile. "Our current target price of Hindustan Zinc is ₹403 (CMP: ₹490) and Vedanta target price is ₹ 611 (CMP: ₹440). Risk reward greatly in favor of Vedanta," said Vikram Kasat, head - advisory, PL Capital.

So far this year, Hindustan Zinc shares witnessed a double-digit surge of 14.06% on the National Stock Exchange. Vedanta's share price, on the other hand, has remained largely range-bound, experiencing a minor rise of 0.17% during the same period.

Hindustan Zinc is one of the leading producers of silver metal in India. It is also among the top five producers of the commodity globally.

"Silver marked a historic move, breaching the $35 mark on Comex for the first time in 12 years. On MCX, silver surged over ₹3,000 to cross ₹1,04,000, highlighting strong investor interest in precious metals," said Jateen Trivedi, VP research analyst- commodity and currency, LKP Securities.

As for gold, the yellow metal is expected to trade in a positive range between ₹97,000 and ₹99,500, with sentiment hinging on upcoming US economic data and geopolitical developments, according to Trivedi.