Hindustan Zinc share price surges 5%, hits 52-week high on silver rally

Shares of Hindustan Zinc Ltd surged on Friday, rising as much as 5.57 per cent to hit a fresh 52-week high of Rs 705 on the BSE. The sharp rally came after the counter had settled 4 per cent lower in the previous session.

The mining major, a subsidiary of Vedanta, has been on a stellar run, delivering returns of over 56 per cent to investors in the last six months. The latest buoyancy in the counter is largely attributed to a vertical rally in silver and metal prices.

The catalyst for Friday’s price action was the red-hot momentum in the silver market. On the Multi Commodity Exchange (MCX), silver prices opened higher at Rs 3.33 lakh per kg, compared to the previous close of Rs 3.27 lakh per kg.

By mid-session, the white metal was trading 2.56 per cent higher at Rs 3.35 lakh per kg, having briefly touched a high of Rs 3.40 lakh per kg earlier in the day. This surge in prices rebounded sharply on Friday after a brief pause.

According to the company’s Q3 FY26 investor presentation, Hindustan Zinc remains India’s only integrated and listed silver producer, a moat that positions it perfectly to capitalise on the current upcycle.

Data from the investor presentation highlights that silver is no longer just a byproduct for the firm but a core profit engine. In the third quarter of FY26, the precious metals segment contributed a staggering 44 per cent to the company’s overall profits, shifting the narrative from a pure-play zinc miner to a diversified metals giant.

Ponmudi R, CEO of Enrich Money, said that silver has surged to new all-time highs near $98.92 and is now consolidating around $98.30-$98.70 following mild profit booking. 

The breakout above the critical $99-$100 psychological band is structurally confirmed, with prices well above all key moving averages and trading within a steep rising channel. Industrial demand for solar, EVs, AI infrastructure, and electronics remains extremely strong, bolstered by safe-haven and inflation-hedge flows, Ponmudi said.

“Near-term support lies at $95–$96.50, followed by a stronger base near $92–$93. A decisive breakout beyond $99–$100 can quickly propel prices toward $102–$104 and beyond. The medium-to-long-term outlook for 2026 remains exceptionally bullish, with potential to test $110–$120 amid supply tightness and accelerating industrial consumption,” Ponmudi added.