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Hindustan Zinc shares fell over 3% to Rs 705.10 on January 28, despite a surge in silver prices, which pushed silver ETFs to record highs. The decline follows Vedanta's announcement to sell up to 6.7 crore equity shares, reducing its stake from 61.84% to 60.25%. The offer for sale (OFS) is priced at Rs 685, a 6% discount. Meanwhile, silver futures rose nearly 6.5% to Rs 3,79,400 per kg, with various silver ETFs also reaching new highs. Vedanta shares increased by over 4% to Rs 735.
Gold and silver ETFs surged 30% from their lows on January 23, recovering from previous losses as precious metals reached all-time highs. The Tata Silver ETF rebounded 17% to Rs 33, while the Groww Gold ETF rose 7% to Rs 155.97. Experts advise caution, suggesting investors should consider gradual purchases over time to mitigate risks associated with volatility and geopolitical uncertainties. Allocating 5-10% of portfolios to precious metals ETFs is recommended for conservative investors. The views expressed are those of the analysts and not of Moneycontrol.
Silver ETFs have rebounded up to 15% after significant losses, driven by value buying amid easing tariff threats from President Trump regarding Greenland. Despite the recovery, ETFs remain in the red, with Tata Silver ETF recovering 10% and Bandhan Silver ETF over 13%. Analysts suggest a cautious approach for investors, recommending spreading purchases over time to mitigate risks, while maintaining a 5-10% portfolio allocation to precious metals ETFs. The market is expected to remain volatile due to geopolitical tensions and industrial demand.
