desk
Share
News Topical, Digital Desk : Shares of Hindustan Zinc, a Vedanta Group company, rose more than 3 percent on Monday, reaching ₹627. The surge followed a sharp recovery in silver prices. Hindustan Zinc is India's largest silver producer, producing refined silver with 99.9 percent purity.
Silver futures for March expiry on MCX jumped nearly 5% to an all-time high of ₹263,996 per kg. In just one session, silver prices rose ₹11,271 per kg. May expiry prices reached new record highs of ₹270,054 and July expiry prices reached ₹277,924 per kg.
International markets also rose. Spot silver reached a new lifetime high of $83.96 per ounce. Silver ETFs also rose by nearly 3 percent. Ongoing unrest in Iran, rising tensions with the US, and the controversy surrounding Federal Reserve Chairman Jerome Powell have increased demand for safe-haven investment options. In such an environment, precious metals like gold and silver are considered safe havens. Investors expect at least two interest rate cuts in the US this year. Non-yielding assets like silver tend to perform better in a low-interest rate environment. Hindustan Zinc's stock performance: On Monday, the company's shares were trading at Rs 627.45, up 3.47 percent. While the stock had fallen by nearly 3 percent in the past five days, it has gained nearly 10 percent in one month and more than 41 percent in six months. Over the past five years, the stock has returned more than 125 percent.
--Advertisement--
