The latest import duty hike was introduced as a policy measure to curb the rupee’s free fall and moderate non-essential imports during a period of heightened global uncertainty linked to the Iran-US conflict, which continues to keep oil prices elevated above the $100-per-barrel mark, with no signs of an early resolution.
Following the import duty hike, MCX silver futures for July 2026 delivery jumped Rs 16,743, or 6%, to Rs 2,95,805 per kg. Gold futures for June 2026 delivery rallied Rs 9,206, or 6%, to Rs 1,62,648 per 10 grams.
This came after Prime Minister Narendra Modi on Sunday urged citizens to reduce purchases of non-essential gold over the next year. Speaking in Secunderabad, Hyderabad, Modi said the move could help reduce pressure on foreign exchange reserves and imports.
Also read | Silver jumps Rs 17,000/kg, gold soars to Rs 1.62 lakh/10g after centre hikes import duty. What should investors do?
Hindustan Zinc is the country’s largest silver producer, having produced 158 tonnes of silver in the December quarter. The rise in import duty on silver, along with the subsequent increase in silver prices, appears to have boosted investor sentiment toward the stock.
Hindustan Zinc share price
Hindustan Zinc shares surged more than 5% to trade at Rs 676.80 apiece on the NSE. The stock emerged as the top gainer on the Nifty Metal index, which itself was up more than 1% despite the overall muted market sentiment. Vedanta shares, meanwhile, rose more than 4%.
Hindustan Zinc shares have gained more than 6% in one week and nearly 20% in one month. The stock is up over 10% in 2026 so far and 57% over the past one year. Over the longer term, the stock has rallied 117% in three years and more than 112% in five years. The company currently has a market capitalisation of around Rs 2.83 lakh crore.
SBI Securities has a ‘Buy’ call on the shares of Hindustan Zinc with a target price of Rs 745 apiece. This implies an upside potential of more than 16% from the stock’s previous closing price of Rs 641.90 apiece on NSE.
The domestic brokerage in a report released on Tuesday said that the government’s push on infrastructure is driving robust steel demand which is expected to reach 300 million tonnes (mnt) by 2030, which in turn would require around 2 million tonnes of demand for zinc and lead in India itself. This positions Hindustan Zinc to be a key beneficiary given it is the world’s largest integrated producer of zinc, it added, further highlighting the company’s attractive valuations.
What Vedanta Chairman Anil Agarwal said
Vedanta Chairman Anil Agarwal recently posted on X that he fully empathises with PM Modi’s appeal to conserve foreign exchange during a period of crisis and uncertainty.
“One way to do this is to consume less. The other way is to produce more. PM’s pain points are oil and gold, India’s two biggest imports, accounting for more than 30% of the total. If you add other resources from below the ground, it becomes 50%. Given our geology and our existing assets, we can massively increase production quickly. It has happened in the past,” he said.
Also Read | Vedanta chief Anil Agarwal backs PM’s call to save forex, pitches for mining reforms
He added that privatising 24 PSUs in the mining and natural resources sector could lead to a manifold increase in production. He also said completing the privatisation of companies such as Hindustan Zinc Ltd (HZL), in which the government holds a 26% stake, and BALCO, in which the government owns 49%, would significantly boost output and create jobs.
“When Vedanta acquired HZL in 2002, India was import-dependent for zinc. Today, we are self-reliant — with exactly the same assets. We conducted R&D and started producing silver and lead, which no one had imagined. Now, we are also undertaking R&D to produce rare earths,” he said.
“In aluminium, output was one lakh tonnes earlier, and now we are in the process of producing 60 lakh tonnes,” he added, expressing confidence that India can substantially reduce imports by increasing domestic resource production using existing assets.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own and do not represent the views of The Economic Times.)
