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News Topical, Digital Desk : Silver prices continue their upward trend and have crossed the crucial Rs 3 lakh mark. On January 20, silver futures on MCX rose by more than 5 percent to reach a record high of Rs 327,998. This continued rise in silver prices has surprised everyone. Meanwhile, the country's leading brokerage house has warned that silver prices may fall after Budget 2026. HDFC Securities has given an important reason behind this. HDFC Securities has issued a warning regarding potential policy-based issues that could impact domestic silver prices in the near future.
Why did the brokerage firm issue a warning on silver?
HDFC Securities has warned that any reduction in import duty in the upcoming Union Budget could put immediate pressure on domestic silver prices, despite the metal's strong fundamentals. The brokerage said that while structural drivers for precious metals remain strong, fiscal policy changes could pose challenges for Indian markets in the short-term.
"However, if the government reduces import duty on gold and silver in the upcoming budget, domestic prices may come under pressure and this could act as a headwind for domestic prices in the short term," HDFC Securities said in its research report.
Any duty reduction will automatically reduce landed costs, which could trigger profit-taking after a sharp rise in metal prices, even if global benchmarks remain high.
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