Hindustan Zinc shares jump 3%. Here are 3 reasons behind today's shine
The shares of Hindustan Zinc jumped more than 3% on Friday, extending sharp gains for the second consecutive session and adding around Rs 6,815 crore
The shares of Hindustan Zinc jumped more than 3% on Friday, extending sharp gains for the second consecutive session and adding around Rs 6,815 crore to its market value as soaring silver prices, weaker dollar, and Q1 business update boosted market sentiment.Hindustan Zinc shares jumped over 3% to trade at Rs 544.80 apiece on NSE on Friday morning. This is the highest level seen by the stock in more than a week.Dollar tumblesThe US dollar slipped towards what may be its biggest weekly loss since April on Friday after weaker-than-expected nonfarm payrolls and private payrolls data tempered concerns around inflation and higher-for-longer interest rates. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was roughly 0.2% lower at 100.70 after a 0.5% dip on Thursday.
It is now down 0.6% for the week, the biggest weekly drop since early April.A weaker dollar supports metal prices, boosting metal stocks. As a result, the sharp surge in Hindustan Zinc’s share price today comes amid an overall uptrend in metal stocks, tracking the drop in the dollar’s strength. The Nifty Metal index gained around 1% to 12,605.80, as seen at around 11 am.Silver prices soarAs a result of the cooling expectations of the Fed's rate hike, silver prices surged. Silver futures with September expiry on the Multi Commodity Exchange (MCX) jumped nearly Rs 5,000 per kilogram (over 2%) to cross Rs 2.38 lakh per kilogram. Silver futures with December expiry meanwhile gained 2.5% to Rs 2,44,678 per kg. Hindustan Zinc is India's largest producer of zinc, lead, and silver. The company operates fully integrated mining and smelting facilities across Rajasthan and Uttarakhand.
It accounts for nearly 80% of India's primary zinc production and is among the world's top 10 silver producers. The company's operations include underground mines, captive power plants, and smelting facilities, ensuring self-sufficiency in raw materials and energy.Hindustan Zinc's Q1 business updateHindustan Zinc on Thursday released its provisional business update for the April-June quarter of FY27. The Vedanta Group company reported its highest-ever first quarter mined metal production for the fifth consecutive year at 268 kt, driven mainly by better grades.Its saleable metal output increased 4% to 260 kilo tonnes, while refined zinc output increased 6% to 213 kt during the quarter under review. Also Read | Technology to be central to Hindustan Zinc's next phase of growthHindustan Zinc’s silver output, however, declined 0.4% to 149 tonnes during the first quarter of FY27.
The BriefWire