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

Hindustan Zinc share price witnessed a sharp sell-off in Thursday’s session, January 8, falling over 6% to ₹588.35 apiece on the NSE, marking its worst single-day crash in six months.

The decline came as silver prices retreated sharply from recent highs, along with other metals, which appeared to impact investor sentiment towards the metal pack following a spectacular bull run in 2025.

Overall, all constituents of the metal index traded with cuts today, amid a sharp 3.5% plunge in the Nifty Metal index, with Hindustan Zinc as the top loser.

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.

Silver prices extend fall to second day

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.

From the record peak of ₹259,322, silver prices are down by ₹18,717. In the international market, spot silver prices fell as much as 3.4% to $75.5 per ounce. The white metal had hit a record high of $84 in late December.

Though geopolitical tensions continue to remain firm, mixed US economic data offered limited clarity on the Federal Reserve’s policy outlook. The US Job openings fell more than expected in November, pointing to cooling labour demand, while private payroll growth in December rebounded by less than anticipated, according to media reports.

Meanwhile, ISM data showed an unexpected improvement in services-sector activity last month.

The mixed economic data also triggered a rally in the US dollar, which rose for the third straight day on Thursday, reaching 98.7, making dollar-priced precious metals more expensive for holders of other currencies.

Investors’ attention has now shifted towards weekly jobless claims due Thursday and the December employment report on Friday for additional clarity on labour market conditions.

Is a further fall in Hindustan Zinc share price likely?

Despite a sharp fall in Hindustan Zinc, technical analysts suggest the stock could extend its losses going ahead, given the recent surge in price over the past weeks.

Anshul Jain, Head of Research at Lakshmishree, said, “Hindustan Zinc, after a sharp 44% rally in under five weeks, is showing signs of short-term exhaustion, with price carving out a minor top. The stock is now retracing toward the 564 zone, which aligns with a key price support and the rising 10-week EMA on the weekly chart.”

"Profit booking has turned aggressive, with sell-side volumes expanding to nearly twice the 50-day average, an early warning signal for bulls. This intensity suggests the move higher was crowded and vulnerable to unwinding. While 564 may offer interim support, the structure points to a deeper retracement toward the 20-week EMA near 520. Any bounce should be viewed as corrective unless volume behavior shifts decisively back in favor of buyers," he further added.

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