Hindustan Zinc Soars by 4%: 3 Reasons Why Investors Are Eyeing Metal Stocks Right Now

Metal sector stocks saw a significant surge on December 10th. This is due to investor expectations that the US Federal Reserve will cut interest rates after its meeting. Lower interest rates in the US would make borrowing cheaper for foreign investors, allowing them to invest more in fast-growing markets like India.

This directly benefits metal stocks. The recent volatility in zinc and silver prices and the decisions of the US Federal Reserve have also attracted investor attention. Hindustan Zinc's share price has also experienced fluctuations due to this influence.

Hindustan Zinc: A Market Leader in Zinc and Silver Production

The company is one of India's largest producers of zinc and silver. The company's share prices are directly affected by global market conditions and domestic demand. At the time of writing, the Nifty Metal index was trading 0.87 percent higher at 10,200.75. Most of the index's constituents were trading in the green.

These Stocks, Including Hindustan Zinc, Surged

Among today's top metal gainers, Hindustan Zinc led the way, rising by more than 4 percent. Vedanta, Hindalco, and Jindal Stainless saw gains of nearly 2%. Tata Steel, Jindal Steel & Power, and Hindustan Copper also rose by approximately 1%. Welspun Corp was also in the green with a slight increase. However, some stocks showed weakness today. SAIL, Adani Enterprises, APL Apollo Tubes, and NMDC were also down today.

Technical Analysis: Support and Resistance Levels for Hindustan Zinc

Analysts have identified support and resistance levels for Hindustan Zinc's stock. Currently, the support level is approximately ₹300, and the resistance level is ₹320. Investors should pay attention to these levels to make informed buying or selling decisions.

Strategic Moves by Hindustan Zinc to Secure Market Leadership

Hindustan Zinc has obtained BIS certification for its zinc-based alloy ingots. This certification enhances the quality and reliability of the company's products. CEO Arun Mishra stated that this step reflects the company's commitment to quality and innovation and will help maintain market leadership amidst competition.

Looking at Hindustan Zinc’s Investment Plans in Rajasthan: A Game Changer

The company is planning an ambitious investment of ₹1 lakh crore in Rajasthan. The aim is to increase production, including zinc and silver. This will not only strengthen the company's supply chain but also increase the potential for share price appreciation for investors.

How have the shares performed over the past year?

Shares of Vedanta's subsidiary, Hindustan Zinc, were at ₹378.65 on March 3, 2025, which is a one-year record low for the stock. From this low, it surged 44.45% in three months, reaching ₹546.95 on June 10, 2025, a one-year record high. Looking ahead, of the 17 analysts covering the stock, 8 have given it a buy rating, 3 a hold rating, and 6 a sell rating.

Impact of US Federal Reserve’s Interest Rate Cuts on Metal Stocks

The US Federal Reserve (FOMC) recently cut interest rates by 25 basis points. This is the third such cut this year, and its effect has strengthened investor sentiment towards metals. Increased demand for zinc and silver has positively impacted Hindustan Zinc's share price.

New York Fed President John Williams also stated that rates could fall soon because the current policy is “a little too restrictive.” Expectations of interest rate cuts were further reinforced by new data showing that US consumer spending is not growing very rapidly, indicating that the economy is not as strong as previously thought.

However, investors are still watching to see the future trajectory of interest rates, as there is considerable uncertainty surrounding the selection of the new Fed Chair. Jerome Powell's eight-year term ends in May, and there are market doubts about whether his successor will cut rates as aggressively as expected.

Experts' Insights: Silver Demand and Hindustan Zinc’s Role in the Market

Experts believe that the demand for silver is growing rapidly in industries such as electric vehicles, solar panels, and electronics. Meanwhile, supply is low, and investors are buying silver instead of gold. Aksha Kamboj, vice president of the India Bullion & Jewellers Association, says that silver has performed even better than gold recently.

Experts suggest that instead of chasing quick profits, investors should focus on metal companies with strong balance sheets, robust production in their factories, and a sustained demand for their products in the future.