Hindustan Zinc Surges to Fresh 52-Week High as Silver Prices Smash Records: What’s Driving the Rally and What Investors Watch Next

Mumbai/New Delhi, December 22, 2025 — Hindustan Zinc shares jumped sharply in early trade on Monday as silver extended a blistering 2025 rally, hitting fresh all-time highs in both global and Indian markets. The move has put the Vedanta Group metal producer back in the spotlight, with the stock notching new highs and building on a powerful one-month run. ^[1]

Hindustan Zinc share price today: what happened on December 22

Hindustan Zinc rose more than 3% in Monday’s session, climbing to a fresh 52-week high of ₹606.70 in early trade. The stock’s surge comes after a strong month-long rally—up over 33% in the past one month, according to Moneycontrol—fueling renewed investor interest in silver-linked plays. ^[2]

The Economic Times reported the stock up about 2.7% to a 52-week high near ₹605 on the BSE during the session, underscoring how the rally was playing out across venues and timestamps. ^[3]

Silver price today: MCX crosses new milestones as global spot hits $69+

The immediate catalyst was silver itself.

India: MCX silver futures jump to fresh lifetime highs

On the Multi Commodity Exchange (MCX), silver futures pushed decisively into uncharted territory:

March expiry silver jumped more than 3% to a record ₹2,14,275 per kg (a key milestone, as it was the first time above the ₹2.10 lakh mark)
May expiry hit ₹2,17,291 per kg
July expiry touched ₹2,21,349 per kg ^[4]

LiveMint similarly noted MCX silver March futures trading around ₹2,13,412 per kg after hitting a lifetime high of ₹2,13,844 per kg earlier in the session—illustrating the fast intraday swings as records were reset. ^[5]

Global: spot silver hits $69.23; gold also at records

Internationally, spot silver climbed to $69.23 per ounce, a new all-time high, in a broad precious-metals surge that also lifted gold to fresh records. ^[6]

Reuters reported that spot gold hit $4,391.92 per ounce while silver printed $69.23, with investors leaning into the prospect of lower interest rates ahead and ongoing safe-haven demand. ^[7]

Why silver is soaring: the 2025 “perfect storm” behind the record highs

Silver’s breakout in 2025 hasn’t been about a single headline—it’s been a blend of macro forces and a tightening physical market.

1) Rate-cut expectations are back in focus

One of the biggest tailwinds has been the market’s shifting view on monetary policy. Reuters noted markets pricing in two U.S. rate cuts next year, which can be supportive for non-yielding assets like precious metals. ^[8]

Moneycontrol cited Axis Securities saying sentiment was boosted by comments from Fed Governor Christopher Waller, who suggested U.S. borrowing costs “should be up to one percentage point lower,” while pointing to slowing job growth and advocating measured cuts to support employment. ^[9]

2) Supply constraints and a physical squeeze narrative

A core theme across reports is tightening supply meeting persistent demand. Reuters highlighted “persistent supply constraints,” while LiveMint echoed the same dynamic alongside strong investment inflows. ^[10]

The Economic Times described silver’s rally as being driven by strong investor demand amid supply pressures, with analysts warning the run may continue into early 2026. ^[11]

3) Investment demand: ETF inflows and momentum

Silver-backed ETFs have remained a key channel for incremental demand. Moneycontrol reported that silver-backed ETFs were on pace for a sixth consecutive week of inflows, reinforcing momentum. ^[12]

4) Industrial demand remains a structural support

Beyond macro, silver’s industrial role continues to matter—especially as the energy transition and electronics demand broaden the use case. Moneycontrol quoted Tata Mutual Fund pointing to “booming solar industry demand,” alongside other demand drivers. ^[13]

The scorecard: silver has outperformed almost everything in 2025

By late December, the magnitude of the rally itself has become the story.

Reuters reported that silver is up about 138% year-to-date, far outpacing gold’s ~67% rise in 2025. ^[14]

That type of move helps explain why silver-linked equities (and especially producers) have been re-rated so quickly in recent weeks.

Why Hindustan Zinc is a prime beneficiary of the silver rally

Hindustan Zinc is increasingly being treated as a direct equity proxy for silver—especially in the Indian market—because of how meaningful silver has become to its earnings profile.

A growing silver earnings engine

The Economic Times reported that Hindustan Zinc ranks among the top five global silver producers with capacity of about 800 tonnes, and that silver contributes about 38% to its EBIT—a key reason investor interest rises when silver prices jump. ^[15]

Moneycontrol also described Hindustan Zinc as the largest producer of silver in India, adding that higher bullion prices are expected to support sentiment toward the stock. ^[16]

Leverage works both ways

When silver rises, producers can see operating leverage (revenues rising faster than many costs). But the reverse is also true: a sudden drop in silver can quickly compress margins and cool momentum—one reason analysts repeatedly flag volatility risk.

Analyst and brokerage view: Jefferies’ ₹660 target and the bull case

A major narrative in this rally has been the “sell-side validation” cycle—where price action meets new coverage and upgraded targets.

Moneycontrol reported that Jefferies initiated coverage with a ‘Buy’ rating and a target price of ₹660, implying more than 12% upside over the prior close referenced in the report. ^[17]

The Economic Times similarly noted Jefferies’ ₹660 target and described the company as a key beneficiary of rising silver and zinc prices, supported by first-decile zinc mining costs. ^[18]

What Jefferies is watching (and what investors should understand)

Both outlets highlighted assumptions and mechanics that matter:

EPS growth expectations: Jefferies projected strong EPS growth into FY26 and FY27 in its framework. ^[19]
Hedging can delay full upside: Moneycontrol reported that Hindustan Zinc had hedged 37% of its 2HFY26 silver volumes at $37, suggesting the full benefit of higher silver prices may flow through later rather than immediately. ^[20]
Costs and efficiency: The Economic Times noted Jefferies’ view that reported zinc cost of production (excluding royalty) declined from $1,257 in FY23 to $1,002 in 1HFY26, driven by operational and input improvements. ^[21]

In short: the bullish case isn’t just “silver up = stock up.” It’s also about cost position, how quickly price realizations flow through, and whether the silver contribution to profitability continues rising.

The rally didn’t start today: momentum has been building through December

While December 22 delivered the latest breakout, the uptrend has been weeks in the making.

Business Standard noted on December 15 that Hindustan Zinc had gained for a fifth straight session, was up about 16.63% over the prior month, and had also seen a notable increase in trading volumes versus its recent average. ^[22]

Moneycontrol added longer-range context: after a 52-week low of ₹378.15 in March, the stock rebounded roughly 60% in about nine months to Monday’s new highs—though it remains far below its historical peak of ₹1,443 (January 2011). ^[23]

What’s next for investors: the key drivers (and risks) from here

With silver and Hindustan Zinc both at record or near-record levels, the market is shifting from “what happened?” to “what now?”

1) Can silver hold above $69 and ₹2.10 lakh/kg—or does profit-taking hit?

Reuters cautioned that year-end trading can bring thinner volumes and profit-taking risks after big moves. ^[24]

That matters because silver is historically volatile; sharp pullbacks can happen even inside long uptrends.

2) 2026 outlook: some analysts see another leg higher

The Economic Times reported analysts projecting up to ~20% further upside by Q1 2026, with expectations that prices could move into the $70–$80 range by March—while also noting that gains may moderate after an extraordinary 2025. ^[25]

3) Watch the “physical squeeze” storyline and policy signals

Moneycontrol reported commentary suggesting momentum was amplified by reports that China may restrict silver exports from 2026, potentially tightening supply further, while also pointing to low inventories and a continuing physical squeeze narrative. ^[26]

4) Company-specific risks still matter—even in a commodity-led rally

Moneycontrol listed key risks flagged around the bullish call, including:

lower silver or zinc prices
mine grades and operational variability
mine renewals after 2030
adverse related-party events ^[27]

Bottom line

On December 22, 2025, Hindustan Zinc’s rally became the equity headline expression of a larger story: silver is in a historic bull run, with prices hitting record highs globally and on India’s MCX, and investor positioning increasingly reflecting expectations of easier monetary policy and ongoing supply tightness. ^[28]

For Hindustan Zinc, the key question from here is whether silver’s momentum sustains long enough—and cleanly enough—for higher realized prices to translate into earnings upgrades, particularly given the role of hedging and the natural volatility of the metal. ^[29]

References