Silver futures with March expiry surged nearly 6.5% to a fresh lifetime high of Rs 3,79,400 per kilogram on Wednesday TradingView , with May and July contracts also reaching new all-time highs.
Hindustan Zinc Shares Drop Despite Silver Rally
While silver prices soared, Hindustan Zinc shares dropped more than 3% to Rs 705.10 on January 28 TradingView , breaking a two-session winning streak. This unusual divergence from the typical positive correlation between silver prices and the stock is due to a specific corporate action.
Reason for the Share Price Drop
Promoter Vedanta announced its committee of directors approved a plan to sell up to 6.7 crore equity shares (1.59% stake) in Hindustan Zinc through an offer for sale (OFS) TradingView . The floor price was set at Rs 685 per share, representing a 6% discount from the previous day’s closing price. At this price, Vedanta will raise Rs 4,589.50 crore. The OFS opened for non-retail investors on January 28 and for retail investors on January 29.
Silver ETFs Surge
Silver ETFs mirrored the sharp surge in silver prices and hit fresh lifetime highs on January 28 TradingView , with multiple funds gaining between 4-6%, including Aditya Birla Sun Life Silver ETF (up nearly 6%), and several others posting gains of more than 5%.
This represents a classic case where company-specific corporate actions (dilution through stake sales) temporarily override positive commodity price movements.
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