The share price of Hindustan Zinc Limited (HZL) continued its impressive upward trajectory for the second straight session on Monday, January 12, registering a sharp gain of 4.5%. This surge was primarily fueled by a historic rally in silver prices, which scaled fresh record highs, driven by renewed geopolitical uncertainties and a significant retreat in the US dollar.
Stock and Silver Performance Details
Hindustan Zinc's stock opened strong at ₹624.8 and maintained its momentum throughout the session, scaling an intraday high of ₹632.55 per share. From its low point in August, the metal stock has now delivered a staggering 57% return to its investors. The company's financial health is closely tied to silver, which contributed a substantial 41% to its Earnings Before Interest and Taxes (EBIT) in the first half of the fiscal year 2025-26 (H1FY26). This marks a significant increase from approximately 28% in the full fiscal year 2023, indicating that the current price surge bodes very well for HZL's operating performance.
The driving force behind this stock movement is the relentless rally in silver. After powering a 38% surge in Hindustan Zinc's stock in 2025, the rally has extended its momentum into early 2026. Silver futures for March delivery on the Multi Commodity Exchange (MCX) began the week with a massive jump of ₹12,665 per kilogram, hitting a fresh all-time high of ₹2,65,390. This milestone represents a 12.5% surge in just the first nine trading sessions of 2026, following a 7% gain last week.
Brokerage Outlook and Global Drivers
Domestic brokerage firm Motilal Oswal expects the bullish trend in silver to continue through 2026. The brokerage has set a price target of ₹3,20,000 per kilogram for MCX silver, while identifying a risk-negation level at ₹1,40,000. For the international market, it anticipates COMEX silver prices to reach $30 per ounce. The analysts believe silver's strength will likely be "front-loaded" in the first half of 2026, amid policy uncertainty and currency volatility. The brokerage maintains a "Buy on Dips" strategy for the year, though the second-half trajectory will depend on global growth cues, bond market stability, and monetary policy credibility.
Globally, spot silver prices strengthened by as much as 6% to a fresh peak of $84.58 per ounce. This contributes to an 18% surge in January alone, building on an extraordinary 148% gain recorded in 2025. The rally, which included a historic short squeeze in October, has far outperformed gold.
Geopolitical and Macroeconomic Factors
The safe-haven appeal of precious metals has been reinforced by a cocktail of global tensions. These include strained China-Japan trade relations, the US capture of Venezuela's leader, fresh tariff-related fears, and a criminal probe into Federal Reserve Chair Jerome Powell. Additionally, deepening tensions in Iran, with intensified anti-government protests in Tehran amid an internet shutdown, have added to the risk-off sentiment.
On the macroeconomic front, the US dollar fell the most in three weeks on Monday, snapping a five-day winning streak. The dollar index was last down 0.2% at 99.011. A weaker dollar makes dollar-priced commodities like silver cheaper for holders of other currencies, thus boosting demand. The move followed the news of the criminal probe into Fed Chair Powell, adding to tensions with the Trump administration. Recent mixed US jobs data has also provided little clarity on the future path of Federal Reserve rate cuts, adding to market uncertainty.
Disclaimer: This article is for informational purposes only. The views and recommendations above are those of individual analysts and not of the publication. Investors are strongly advised to consult certified experts before making any investment decisions.
