It was yet another bullish day for Hindustan Zinc, as the share price rallied 3% to reach ₹656.35 apiece, the highest level since August 2024. The gains were boosted by the continued rally in silver rates in both domestic and global markets, making the stock one of the top performers in December so far, even as the broader market struggled to find momentum.
Hindustan Zinc share price opened the session higher at ₹656.35 apiece and maintained its momentum to hit a 16-month high, even as the frontline indices remained lower for the third consecutive session. With today’s rally, Hindustan Zinc share price December gains rose to 33.45% so far, contributing to a 46% rally in 2025.
The rally in Hindustan Zinc’s share price has not only pleased investors but also significantly increased the company’s market valuation, which currently stands at ₹2.74 lakh crore, with the company adding nearly ₹85,000 crore in market capitalisation in 2025.
Meanwhile, rising silver price often benefit Hindustan Zinc, as the metal contributed a significant 40% to the company’s profitability in the September quarter.
With silver rate expected to remain above $50 per ounce for the remainder of FY26, and given its direct contribution to EBITDA, domestic brokerage B&K Securities projects the company’s EBITDA share from silver to increase to 42% in FY27, up from 28% in FY25.
Silver prices touch another record high
After gaining ₹16,000 per kg on Friday, silver rate extended its record-breaking run into Monday as well. Contracts for March delivery gained another ₹₹2.5 lakh mark for the first time”>14,400 per kg to cross the ₹2.5 lakh mark for the first time, reaching ₹2,54,174.
This took the month-to-date gains to a whopping 43% and also contributed to a year-to-date rally of 182%, which is more than twice gold’s rally of 82%.
In the international market, spot silver prices crossed the $80 per ounce mark for the first time, reaching $84.
What is driving silver prices higher?
Analysts have attributed the stellar rally in silver prices to multiple factors, with the key driver being rising concerns that supply shortages will persist amid strong industrial and investment demand.
Global silver supply has failed to keep pace with demand for seven consecutive years, leading to a structural market deficit, which is forecast to continue for a sixth consecutive year in 2026.
Unlike gold, silver has extensive industrial applications, with solar panel manufacturing emerging as a major driver of consumption. At the same time, investment demand for silver—both in physical form and through exchange-traded funds (ETFs)—continues to rise, reflecting growing confidence in the metal’s investment appeal.
The metal’s recent inclusion in the US critical minerals list has further strengthened sentiment.
On the geopolitical front, US President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer, maybe very close,” to an agreement to end the war in Ukraine.
On the macroeconomic front, traders continue to expect two US rate cuts next year.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
