Hindustan Zinc shares see their best week since May 2024 as Silver rally spurs metal stocks

Shares of Hindustan Zinc Ltd., a subsidiary of Anil Agarwal-owned Vedanta Ltd. ended 7.5% higher on Friday, extending their gains for the fourth day in a row.  The stock also ended at a 52-week high.

A rally in Silver prices continues to spur the stock higher. Not just Silver, Copper prices too are at record high levels, leading to shares of Hindustan Copper surging 7% as well to end at a 52-week high.

Hindustan Zinc's promoter, Vedanta Ltd. also saw its stock end at a 52-week high on Friday.

For the week, shares of Hindustan Zinc ended with gains of 13%, which turned out to be the best week since May 2024. This is also the third straight weekly gain for the stock, having gained 2.7% and 5.9% respectively over two preceding weeks.

Silver prices have surged to record levels, now trading nearly $65 an ounce, extending their year-to-date gains past 120%. A combination of future rate cuts by the US Federal Reserve, coupled with tighter supply, ETF buying and heavy industrial demand continues to spur the metal higher.

Hindustan Zinc is the only listed Silver play in India, with over 42% of its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) coming from Silver.

Shares of Hindustan Zinc ended 7.3% higher at ₹561 on Friday. The stock is still down 30% from its record high level of ₹807.7 that it had surged to in May 2024. The stock is up 27% so far year-to-date.