Hindustan Zinc Rallies On Record Silver Surge Analysts Upbeat But Retail Sentiment Remains Cautious

Shares of Hindustan Zinc edged marginally higher to ₹463 on Monday, following silver futures' record highs on the Multi Commodity Exchange (MCX) on Friday. 

December contracts reached ₹1,28,612 per kilogram, while March expiry crossed ₹1.3 lakh for the first time. In the spot market, silver jumped ₹2,100 in a single day to ₹1.32 lakh per kilogram, outperforming gold.

Hindustan Zinc produces and sells refined silver, and hence a rise in this commodity's price augurs well for India's largest integrated silver producer. Hindustan Zinc has gained nearly 11% so far in September, tracking the rally in silver and renewed institutional interest.

Growth And Expansion Drivers

SEBI-registered analyst Pradeep Carpenter said Hindustan Zinc's 11% rebound from its late August bottom has been underpinned by silver strength, which contributes up to 20% of revenues. 

He pointed to the company's recent ₹3,823 crore tailings reprocessing project and a ₹12,000 crore three-year investment plan aimed at doubling capacity across zinc, lead, and silver as reassuring signals for investors.

Technical Outlook

SEBI-registered analyst Deepak Pal said the stock has sustained above its 200-day EMA, with support in the ₹420–₹430 band. He noted that resistance lies at ₹475–₹480, and a breakout above ₹480–₹500 could open the way to ₹525–₹530 and potentially ₹550. 

However, he cautioned that slipping below ₹420 would put the stock back under pressure.

Carpenter added that while commodity tailwinds are fueling optimism, risks remain from price swings, promoter stake sales, and execution of large capital projects.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bearish' amid 'normal' message volume.

Hindustan Zinc's stock has risen 5% so far in 2025.

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