Hindustan Zinc Jumps 5% As Silver March Futures Top Rs 3.5 Lakh/Kg; Silver ETFs Rally Up To 12%

Hindustan Zinc shares climbed about 5% on January 27 as silver extended its blistering rally to new record highs, with silver ETFs also mirroring the sharp upmove in the precious metal.

The stock touched

a fresh 52-week high of Rs 733 in early Tuesday trade. A Vedanta Group company, Hindustan Zinc is India’s largest silver producer and manufactures refined silver with a minimum purity of 99.9%.

Silver hits record highs
Silver futures on the MCX for March delivery surged over 7% to a lifetime high of Rs 3,59,800 per kg. Contracts for May and July expiries also scaled fresh peaks of Rs 3,75,261 per kg and Rs 3,82,940 per kg, respectively.

In the global market, spot silver jumped 5.2% to $109.22 an ounce after touching a record $117.69 in the previous session. The metal has rallied 53% so far this year. According to market experts, renewed tariff threats from US President Donald Trump have boosted demand for safe-haven assets, supporting precious metals. Trump on Monday signalled plans to raise tariffs to 25% on select imports from South Korea, following earlier tariff threats on Canada, adding to global trade uncertainty.

Silver ETFs rally
The surge in silver prices triggered strong gains across silver exchange-traded funds. Nippon India Silver ETF (Silverbees) rose nearly 10% to a new 52-week high of Rs 321.48. Groww Silver ETF advanced around 10%, while Zerodha Silver ETF gained over 11% to a record Rs 34.7. HDFC Silver ETF jumped more than 12%.

Other funds such as UTI Silver ETF, Aditya Birla Sun Life Silver ETF, Tata Silver ETF, ICICI Prudential Silver ETF, DSP Silver ETF, Motilal Oswal Silver ETF and Axis Silver ETF also posted sharp gains.

Is it time to buy silver ETFs?
Experts caution that while momentum remains strong, valuations and sentiment pose near-term risks. Silver tends to be more volatile than gold, and steep rallies are often followed by sharp corrections once speculative interest cools.

For fresh investors, staggered investments through a systematic or dollar-cost averaging approach may help manage timing risk. Those holding silver as a tactical or short-term allocation could consider partial profit booking and portfolio rebalancing to protect gains. However, investors with a long-term view driven by structural themes such as industrial demand and supply constraints may choose to retain a core holding, while avoiding large fresh exposures at current levels.