Hindustan Zinc Soars on Silver Price Surge, Two-Day Gain Hits 7%

Hindustan Zinc shares surged by up to 4% on Friday, extending gains for a second consecutive session and pushing its two-day advance to 7%. This price jump is largely attributed to the recent rise in silver prices, which have climbed for a third straight day. MCX silver jumped Rs 13,000 per kg to Rs 2,45,158, supported by a weaker dollar and efforts from the U.S. Treasury Department to keep longer-term yields under control.

Hindustan Zinc is one of the world's leading silver producers, with an annual output of 22.5 million ounces, ranking behind only Fresnillo at 52.5 million ounces and Newmont at 28 million ounces. The company also operates in the lowest quartile of the global zinc cost curve and has a mine life of about 25 years.

Despite silver's recent pullback, its fundamentals remain strong. Demand from sectors such as solar energy, electric vehicles, and electronics remains robust, while supply-side constraints support its constructive medium- to long-term outlook.