Hindustan Zinc Limited hit an intraday low of Rs 544 on 23 June, sliding 5% as global silver prices crashed 5% through the session.

Silver is not a side story for this company. It contributes 24% of total sales revenue and, because it comes out as a byproduct of zinc smelting at almost no extra cost, it accounts for 45% of overall profitability.

When silver falls hard, Hindustan Zinc feels it almost immediately. Global spot silver dropped 5% to $61.90 per ounce on Tuesday, touching its lowest point since 11 June.

Back home, near-month silver futures fell by Rs 2.25 lakh per kilogram. Month-to-date, silver is now down 15%, wiping out all the gains from May.

The trigger behind the precious metals sell-off is rising concern over US interest rates. Fed officials have signalled a possible rate hike in 2026 if inflation stays sticky.

Higher rates are bad news for silver and gold since they offer no interest income. Traders now price an 88% chance of a December rate hike, up from 61% just last week.

Investors are waiting on the US Personal Consumption Expenditures data, due Thursday, for the next clue on where rates go. June has been a rough month for the stock overall.

The shares had already lost 14% before Tuesday’s fall, weighed down by an Enforcement Directorate visit to Vedanta offices and media reports suggesting the government may sell up to a 2% stake in the company.

The government holds close to 28% in Hindustan Zinc, India’s largest silver producer, while promoter Vedanta holds around 61%.

Hindustan Zinc closed at Rs 546.00 on NSE on 23 June, down 4.75% for the day. The stock is now 25% below its 52-week high of Rs 733, hit in January 2026.

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