Mumbai, Feb 2, 2026, 16:06 IST — Market closed
- Nippon India Silver ETF dropped 12.9% on NSE following a turbulent day in silver-linked trading
- Exchanges are adjusting price-band reference points for bullion ETFs following sharp swings
- Traders are eyeing overseas silver markets and the U.S. jobs report due Friday for their next cue
Nippon India Silver ETF plunged sharply on Monday, dragged down by another drop in silver prices and a tough run for bullion ETFs in India.
The ETF (SILVERBEES) ended the day at 219.94 rupees on the National Stock Exchange, plunging 12.9% after dropping to a low of 205.02. It also hit an intraday high of 252.49 amid heavy trading volume, with roughly 321.7 million units changing hands, according to Groww data.
The move is significant since silver exposure has ranked among the most active “risk-on” plays for retail investors. Recent sessions have combined commodity shocks with shifts in market structure. When prices hit limits and liquidity dries up, ETFs don’t always act as the straightforward proxies investors anticipate.
India’s exchanges aimed to prevent price bands from triggering during a rare Sunday session linked to the Union Budget, with markets opening even though it was the weekend.
The National Stock Exchange adjusted the reference price for gold and silver ETFs to the previous day’s net asset value (T-1 NAV) for the Sunday session, introducing a 20% lower price band, according to a circular. This came after confusion over circuit levels. Satish Dondapati, a fund manager at Kotak Mahindra Mutual Fund, told Mint the move helped sidestep a “tricky” calculation issue with bullion ETF circuits. mint
Silver took the spotlight again, slipping 3.4% to $81.65 an ounce by 1008 GMT Monday, after plunging as much as 15% earlier, Reuters reported. The CME announced it would hike margin requirements for precious-metal futures, a move likely to force traders to put up more cash to maintain positions. “The increase in margin requirements makes holding speculative positions less appealing,” said Zain Vawda of OANDA’s MarketPulse. Reuters
Nippon India Silver ETF aims to match returns closely with the domestic price of physical silver, minus expenses and tracking error, according to the fund’s disclosures. It can invest in physical silver as well as exchange-traded commodity derivatives.
The selloff hasn’t spared just one product. Multiple India-listed silver ETFs plunged hard at their recent lows as silver itself pulled back from record highs, Mint reported.
JPMorgan Chase says the next move in silver is tough to predict. The bank noted that the factors fueling silver’s rally have become harder to “pinpoint and quantify.” Unlike gold, silver doesn’t have central banks stepping in as steady dip buyers. JPMorgan still expects silver to hold a “higher floor” between $75 and $80 an ounce but cautioned about the possibility of the gold-to-silver ratio rising in the weeks ahead. Reuters
Traders are set to eye silver’s stability in overseas markets next session, along with any new macro data that could reshape rate and dollar forecasts. The U.S. Employment Situation report for January is scheduled for release Friday, Feb. 6, according to the U.S. Bureau of Labor Statistics calendar.
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