Silver ETFs and the Stock Market
Bad news is coming from the market for investors right now. Because there is a continuous decline in the Indian stock market. Even today i.e. on January 8, 2026, the market’s main index Sensex is trading at 84,424.62 with a decline of about 536.52 points at 12 noon. Along with this, the period of decline in silver and zinc has also started since last few days. Hindustan Zinc shares witnessed a decline on January 7 as silver prices continued to remain weak. Within an hour, silver fell to around Rs 4,000 per kg. Its effect was also visible on Silver ETF, which indicated a decline in precious and industrial metals.
Hindustan Zinc shares fell by nearly 5 percent to reach a three-week low of Rs 599.25 per share. The decline continued for the second consecutive session. This company is the largest producer of silver in India and produces 99.9 percent pure silver.
Silver prices on MCX
On the Multi Commodity Exchange of India (MCX), silver futures with March expiry fell by more than Rs 3,000 to Rs 2,47,529 per kg. Just a day earlier, this contract had reached a record high of Rs 2,59,692 per kg.
May expiry futures prices fell by more than Rs 3,300 to Rs 2,54,876 per kg. At the same time, contracts with July expiry fell by more than Rs 4,000 to Rs 2,62,399 per kg. This sharp decline is believed to be due to profit booking. Apart from this, the strengthening of the dollar ahead of important US employment data this week also put pressure on precious metals.
Condition of Silver ETF
The fall in silver prices also affected the silver ETF. A decline of more than 3 percent was recorded in Edelweiss Silver ETF, HDFC Silver ETF, UTI Silver ETF, Axis Silver ETF, Zerodha Silver ETF, Groww Silver ETF, Tata Silver ETF, SBI Silver ETF, DSP Silver ETF, Aditya Birla Silver ETF, Mirae Asset Silver ETF, Nippon Silver ETF and ICICI Prudential Silver ETF. At the same time, Kotak Silver ETD, Motilal Oswal Silver ETF and 360 ONE Silver ETF also declined by about 3 percent. Silver ETF remained weak for the second consecutive session.
Hindustan Zinc Share Status
Hindustan Zinc shares have fallen by more than 3 percent in the last five days. However, the stock has risen 22 percent in the last one month. The stock has increased 37 percent in the last six months. But now its shares have declined.
What should investors do?
Aggarwal of VSRK Capital says that silver shows more fluctuations than gold and currently it is showing signs like bubble. He said that when the market environment improves and prices remain near a strong level, then investment can be planned gradually. But it is also important to understand that after a big rally, silver may fluctuate for several years.
Harshal Dasani, Business Head, INVasset PMS, said from the perspective of 2026 that the trend of silver still remains strong in the medium term. He said that the demand related to electronics, solar and electrification is continuously increasing, while the supply has remained less for many years, due to which there remains a shortage in the market. According to Dasani, silver became a bullish trade in 2025 and showed strong growth throughout the year. For this reason, when the mood of the market changed, the effect of profit booking and removal of positions taken by taking more debt was visible. He said that gold also gave good returns last year, hence the normal fall after such a strong rise seems even bigger. According to analysts, in the short term the prices of silver and gold will depend on the US dollar and interest rates.
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