Mumbai, Jan 8 Hindustan Zinc shares came under heavy selling pressure on Thursday, as the stock fell more than 6 per cent to Rs 588.35 on the NSE.
This marked its steepest single-day fall in the last six months. The sharp decline was largely driven by a sudden correction in silver prices, which dampened investor sentiment across the metal sector after a strong rally last year.
The sell-off was not limited to one stock, as the entire metal pack traded in the red during the session.
The Nifty Metal index slipped around 3.5 per cent, with Hindustan Zinc emerging as the biggest laggard among its peers.
The stock opened lower at Rs 623 and continued to slide through the day, hitting its lowest level since June 18.
With Thursday’s fall, Hindustan Zinc has now lost about 8.5 per cent in just two trading sessions.
The decline has also wiped out its early 2026 gains, pushing the stock down nearly 3.4 per cent so far this month.
The weakness in silver prices is a key concern for the company, as silver plays a major role in its earnings.
Silver contributed around 41 per cent to Hindustan Zinc’s earnings before interest and taxes in the first half of FY26, compared with about 28 per cent in FY23.
Any sustained fall in silver prices could therefore have a direct impact on the company’s operating performance.
Silver prices, which had powered Hindustan Zinc shares to a strong 38 per cent rally in 2025, have cooled off sharply in recent sessions due to profit booking.
Investors are also staying cautious ahead of important US economic data that could influence the interest rate outlook of the US Federal Reserve.
On the domestic front, silver futures for March delivery on MCX fell by another Rs 10,000 per kilogram on Thursday to an intra-day low of Rs 240,605.
This came after a 3.17 per cent fall in the previous session, taking the total two-day decline to over Rs 18,000 per kilogram.
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