Hindustan Zinc Falls 6%; Announces Tata Steel Tie-Up

Indian markets came under strong selling pressure on 23 March 2026. The Sensex fell by more than 1,900 points, and the Nifty slipped below 22,550, as rising crude prices and global tensions weighed on sentiment.

During the session, Hindustan Zinc shares dropped up to 6% to ₹485 on the BSE. The decline has been building. The stock has lost 17% in a month and is now nearly 30% below its 52-week high of ₹733 seen in January.

Even as the stock came under pressure, the company announced a partnership with Tata Steel to use its low-carbon zinc product, EcoZen, in steel manufacturing.

What Triggered the Sharp Fall In The Stock?

The biggest factor was the sudden drop in silver.

On the MCX, May 2026 silver futures fell by ₹13,606, or around 6%, to ₹213,166 per kg. This is a steep one-day move.

For Hindustan Zinc, this has a direct impact. Silver contributes a large share of its earnings, estimated at about 44%. So when prices fall, expectations around earnings also adjust quickly.

Along with this, a few broader factors added pressure:

• Rising tensions in the Middle East pushed crude oil higher

• Higher crude oil prices raised inflation concerns

• This strengthened expectations that interest rates may stay elevated

In such conditions, commodities like silver often see selling.

The decline was not limited to a single stock. The Nifty Metal index dropped by over 4%, while Vedanta also fell by more than 4% during the session.

What Role Did Macro Developments Play?

There was another layer to the weakness.

State-run oil companies raised diesel prices for bulk buyers by about ₹22 per litre. This move comes at a time when crude prices are already firm due to tensions in the Middle East, and that is starting to show up in fuel costs.

When fuel prices climb, companies usually react quickly. Many cut back on spending. Some slow down production. This tends to show up first in sectors like manufacturing, electronics and solar, where silver is used in large volumes.

If activity eases, demand for silver can dip in the short run. Prices don’t take long to respond. Stocks linked to the metal often move along with it.

At the same time, the broader mood in global markets has been cautious. Investors are keeping an eye on energy supply risks, sticky inflation and uncertainty around interest rates. All of this has added pressure on metal stocks.

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What Do Recent Developments And Earnings Indicate?

For Q3FY26, Hindustan Zinc reported a net profit of ₹3,916 crore, marking a 46% rise year-on-year. Revenue for the quarter came in at ₹10,980 crore, up 27%. Mined metal production stood at 276 kilotonnes, the highest level for a third quarter so far.

On the strategic front, the company has tied up with Tata Steel to supply its low-carbon zinc product, EcoZen, for steel production.

EcoZen is made using renewable energy and has a carbon footprint of less than 1 tonne of CO₂ per tonne of zinc. This is roughly 75% lower than the global average.

Zinc is mainly used to coat steel so it lasts longer, especially in sectors like infrastructure, automobiles, renewable energy and electronics. With this tie-up, both companies are trying to bring down emissions across the entire production process.

This also shows that while the stock may react to short-term moves in metal prices, the company is continuing to work on improving operations and moving toward cleaner production.

Source:

ET