Hindustan Zinc shares jump 6.5%, Vedanta zooms 6% to all-time high as silver tops $90/oz; NIFTY METAL index up 2.8%

The NIFTY METAL index was trading 2.7% higher at 11,660.45 levels, with 13 out of 15 constituents trading in the green.

The index soared as much as 2.8% during the session.

Hindustan Zinc (HZL), the subsidiary of metal and mining giant Vedanta and the only pure-play silver company in the country, rallied over 6.5% to hit a fresh 52-week high of ₹670.95 on the NSE.

HZL is the sole company in India that produces primary silver directly from mined ore. Silver is largely recovered as a high-margin by-product of its zinc and lead mining operations.

Vedanta itself witnessed a significant rally in the trade and scaled a fresh all-time high.

The stock jumped as much as 6.63% to hit a fresh record high of ₹679.45 on the NSE.

National Aluminium Company (NALCO) also hit a record high of ₹369.50 on the NSE.

Hindustan Copper was trading over 4% higher at ₹561.60 on the NSE.

Silver tops $90

In the international market, silver surged past $90 an ounce for the first time, while gold hovered near a record high, as criticism of the US Federal Reserve, expectations of further US rate cuts, and heightened geopolitical tensions fuelled a sharp rally in precious metals.

The white metal jumped as much as 5.3% to touch $91.5535 an ounce. While underlying US inflation in December came in lower than feared, economists noted that the data were artificially depressed due to the record-long government shutdown.

Although the Federal Reserve is expected to pause rate cuts for several months, a part of market participants are pricing in at least two more cuts later in the year.

Vedanta: Things to know

Analysts, according to news reports, note that Vedanta is in the final stages of securing statutory approvals for its proposed demerger into five separately listed entities, a move they believe will unlock significant shareholder value.

The analysts said the restructuring remains a key catalyst, with the current market price yet to fully reflect the value of the aluminium and zinc businesses, while the remaining businesses are effectively available “for free”.

In addition, strong commodity prices, ongoing cost-reduction initiatives, and volume growth are expected to support the company’s performance.

Vedanta’s EBITDA is projected to grow at a 20% compound annual growth rate (CAGR) over FY25–FY28E, driven by robust performance across its core segments.