Why did Hindustan Zinc shares rise over 5% today and should you buy, sell or hold?

Hindustan Zinc Ltd shares rose sharply in early trade on Wednesday, tracking a strong rally in silver prices across global and domestic markets, alongside heavy trading volumes on the bourses.

Shares of Hindustan Zinc were trading 5.58 per cent higher, up Rs 35.15 at Rs 665 on the NSE as of 11:12 am. The stock opened at Rs 640 against its previous close of Rs 629.85 and moved in a range of Rs 636.45 to Rs 670.95 during the session. Trading volumes stood at 161.21 lakh shares, with a traded value of Rs 1,061.98 crore.

Why Hindustan Zinc Share Price Is Rising?

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The rally in the stock came amid firm trends in silver prices on the Multi-Commodity Exchange (MCX) and a sharp surge in global spot silver prices. On MCX, silver traded within a range of Rs 2,81,000 to Rs 2,89,595 during the session.

The contract opened at Rs 2,81,000, compared with the previous close of Rs 2,76,881. Silver touched its 52-week high of Rs 2,89,595, while the 52-week low stands at Rs 95,606. Trading volume was recorded at 1,25,165 units, with open interest at 24,994 lots.

In the international market, spot silver jumped above the key $90 an ounce level for the first time. Silver prices rose more than 3 per cent to $90 per ounce by 0308 GMT. The metal later climbed as much as 5.3 per cent to touch $91.5535 an ounce.

The rally in silver was driven by multiple global factors. Soft US inflation data strengthened expectations of interest rate cuts by the US Federal Reserve. This was supported by geopolitical tensions, robust industrial and investment demand, and tightening inventories, according to market commentary.

Also Read: Gold price cools after record run; silver reaches new peak at Rs 2,72,202 — What’s driving the rally?

Silver broke above $90 an ounce for the first time, while gold hovered close to record highs. Underlying US inflation in December was lower than anticipated, although economists said the data was artificially depressed by the record-long government shutdown.

While the Federal Reserve is expected to pause rate cuts for several months, swaps markets are pricing in at least two more cuts later in the year.

Precious metals have started the year on a strong note, extending sharp gains seen in 2025. Concerns around the independence of the US Federal Reserve also weighed on sentiment, adding to haven demand. Global developments, including geopolitical tensions and political uncertainty, further supported buying interest in precious metals.

Hindustan Zinc Share Price Target

Motilal Oswal has given a neutral rating to Hindustan Zinc with a target price of Rs 670; the current price is Rs 607.

Hindustan Zinc Share Price History

Reflecting the broader uptrend, Hindustan Zinc has delivered strong returns across timeframes. The stock has gained 5.49 per cent over the past week, 18.33 per cent over one month, and 8.60 per cent so far this year.

On a longer-term basis, it has risen 52.41 per cent over one year, 90.05 per cent over three years, and 137.57 per cent over five years.