Hindustan Zinc share price plunges 6% in biggest intraday drop in 6 months as silver prices retreat

Key Highlights

• Hindustan Zinc share price opened the session lower at ₹623; the pressure intensified as the day progressed, sending it to the lowest level since June 18.
• Considering today’s low, the stock has lost 8.5% of its value in just two trading sessions and has also erased its early 2026 gains, causing it to trade 3.4% lower in January so far.
• The drop in silver prices will potentially impact the company's operating performance, as silver contributed 41% to HZL’s earnings before interest and taxes (EBIT) in H1FY26, up from about 28% in FY23.
• The record-breaking run in silver prices, which powered the stock to a 38% surge in 2025, has cooled off lately amid profit booking by investors, while they also appear to be holding their bets ahead of key US economic data later this week, which will provide cues for US Federal Reserve rate cuts.
• After crashing 3.17% on Wednesday, the silver March delivery futures contract on MCX fell another ₹10,000 per kilogram today, reaching the day's low of ₹240,605, taking the two-day cumulative drop to ₹18,206 per kilogram.