Shares of Hindustan Zinc fell around 4% after the Indian government issued permits to import 6,500 metric tonnes of silver over the next six months to meet festive-season demand, Reuters reported. India is the world’s largest consumer of the precious metal.
Hindustan Zinc shares dropped to Rs 498.25 apiece on NSE on Friday morning despite the overall optimism in the stock market. The company’s market capitalisation slipped below Rs 2.11 lakh crore.
Also read | 6,500 metric tons incoming in next six months: India opens festive floodgates for silver
India’s higher imports, which relies on international purchases to meet more than 80% of its silver demand, could support global prices while easing hefty domestic premiums that have risen due to tight supplies. India had restricted imports of silver in nearly all forms with immediate effect mid-May. In June, it further tightened the rules by adding silver grain and powder to the restricted category and requiring prior import authorisation.
"The government has allowed much more silver to be imported than the country is likely to need over the next six months, so this should help bring down domestic premiums," Reuters quoted Chirag Thakkar, chief executive of Amrapali Group Gujarat, a leading silver importer.
Also read | Hind Zinc eyes lower production costs after record Q2 profit, sales
Silver prices as a result dropped. Silver futures with December, March and May expiries dropped around 3% each to trade at Rs 1,93,940 lakh per kilogram, Rs 1,99,985 per kg and Rs 2,04,513 per kg.
"The festive season is here, but demand is yet to pick up. Many investors have burned their fingers in the recent sharp price correction and are now staying on the sidelines," the report quoted a Mumbai-based dealer with a bullion importing bank.
Hindustan Zinc share price
Hindustan Zinc shares have fallen over 7% in the past week and 16% in the past month. The stock is down more than 18% so far in 2026 but has gained 4% over the past year.
In the longer term, the shares of the company have jumped 65% in three years and more than 55% in five years. The company has a market capitalisation of less than Rs 2.11 lakh crore.
Also read | Hindustan Zinc shares jump after Q2 net profit more than doubles. Why Jefferies cut target price?
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