Shares of select metal and mining companies moved sharply higher today as silver prices extended their rally to fresh record highs, boosting sentiment across producers and trading-linked names.

On the MCX, silver surged nearly 4% to around Rs.2,86,100 per kg in early trade on January 14, while international prices crossed $89 per ounce, marking an all-time high. The sharp move in the white metal lifted stocks such as Hindustan Zinc, MMTC and Vedanta, all of which figured among the top gainers in early trade.

The rally in silver prices has been driven by a combination of safe-haven demand and tightening supply conditions. Heightened geopolitical risks, including fresh tensions involving Iran, Venezuela and Eastern Europe, along with concerns around the independence of the U.S. Federal Reserve, have pushed investors towards precious metals. Silver has also benefited from its dual role as both a monetary and industrial metal, outperforming gold over the past year amid supply constraints in key global markets and strong speculative interest following last year’s short squeeze in London.

Among Indian stocks, Hindustan Zinc gained as higher silver realisations directly improve earnings visibility, given silver’s growing contribution to its overall profitability alongside zinc and lead. Vedanta also moved higher, reflecting its indirect exposure through Hindustan Zinc and improved sentiment around the group’s metals portfolio amid firm commodity prices. MMTC, meanwhile, rose on expectations of improved trading margins and inventory valuation gains, as higher bullion prices tend to support revenues for state-run trading and precious metals distribution companies.

If silver prices sustain at elevated levels, Hindustan Zinc emerges as the stronger structural beneficiary, while MMTC remains a high-beta trading play. For Hindustan Zinc, every $10/oz move in silver prices is estimated to add meaningfully to annual EBITDA and free cash flows, given silver’s role as a high-margin by-product, with minimal incremental cost—directly improving earnings visibility, dividend capacity and valuation support. MMTC, on the other hand, does not benefit from price realisation but from price action: higher and more volatile silver prices drive trading volumes, hedging activity, inventory revaluation and working-capital turnover, explaining the sharp spike in both price and volumes. In short, Hindustan Zinc benefits if silver stays high, MMTC benefits if silver stays active, with current market action reflecting investor positioning across both production-led earnings leverage and momentum-driven trading exposure.