After dazzling investors with a 170% rally last year, silver delivered a stunning reversal on MCX, plunging up to 27% — or Rs 1,07,968 — in a single day, marking its worst ever crash and dragging prices back below the Rs 3 lakh mark, just a day after the metal had soared to a record high of Rs 4 lakh.
On the MCX, Silver March Futures nosedived Rs 1,07,968 or 27% to close the Friday session at Rs 2,91,925 per kilogram.
In the international market, spot silver tanked 28% to $85 per troy ounce . The white metal touched a record high of $121.60 earlier in the week. What led to this massive wipeout? Here are 3 possible factors behind the decline.
As a result of the selloff, Hindustan Zinc, the Vedanta subsidiary, tanked 12.5% to log their biggest single-day fall since 2008. Just over a week ago, Hindustan Zinc was the most valued metal company with its m-cap crossing the Rs 3 lakh crore mark.
On the global stage, Hindustan Zinc ranks among the leading silver producers, with annual output of 22.5 million ounces — ahead of Grupo Mexico’s 12.1 million ounces and not far from top players such as Fresnillo at 52.5 million ounces and Newmont at 28 million ounces. The company also operates in the lowest quartile of the global zinc cost curve and has a mine life of about 25 years.
Hindustan Zinc Q3 snapshot
The company reported its highest ever quarterly topline and bottom line growth in the December quarter, backed by a 4% YoY growth in its mined metal production. The Vedanta arm’s consolidated net profit jumped 46% to Rs 3,916 crore compared to Rs 2,678 crore in the year ago period.The company’s total revenue from operations in Q3FY26 was also its highest-ever quarterly revenue at Rs 10,980 crore, up 27% from Rs 8,614 crore posted in the corresponding quarter of the last financial year.
Its mined metal production in the quarter under review stood at 276 Kt, remaining its highest-ever for the third quarter. It was up 7% QoQ growth.
Hindustan Zinc’s promoter Vedanta also recently concluded an Offer For Sale (OFS) by selling up to 1.1% stake in its subsidiary to raise up to Rs 3,300 crore. The fall on Friday has taken the stock price below the OFS indicative price and the floor price as well.
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