Hindustan Zinc Gains 9.65%: 5 Key Factors Driving the Week’s Rally

Monday, 19 January 2026: Strong Intraday Rally and Record Quarterly Results

Hindustan Zinc Ltd began the week on a positive note, surging 3.74% to close at Rs.661.20, supported by an intraday high of Rs.662.6. This gain outpaced the Sensex’s 0.49% decline, signalling early strength. The company also announced record quarterly results for Q3 FY26, reporting net sales of Rs.10,980 crore and a PBDIT of Rs.6,054 crore, both all-time highs. Profit after tax reached Rs.3,897.28 crore with earnings per share of Rs.9.27, reflecting robust operational performance. The financial trend was upgraded from flat to positive, and the Mojo Grade was raised from Hold to Buy, underpinning investor confidence.

Tuesday, 20 January 2026: New 52-Week High and Financial Trend Upgrade

The stock continued its upward trajectory, hitting a new 52-week high of Rs.674.3 and closing at Rs.680.50, up 2.92%. This performance was notable given the Sensex’s 1.82% decline. The stock outperformed its sector and maintained a position above all key moving averages, signalling sustained bullish momentum. The company’s strong quarterly growth and improved financial trend were key drivers, with the operating profit to net sales ratio reaching 55.14%. Despite a low cash balance of Rs.151 crore, the company’s profitability and margin expansion supported the positive sentiment.

Wednesday, 21 January 2026: New 52-Week High and Surge in Derivatives Open Interest

Hindustan Zinc Ltd reached another milestone with a new 52-week high of Rs.699.35, closing at Rs.697.05, up 2.43%. The stock’s three-day rally delivered an 8.84% return, significantly outperforming the Sensex’s 0.47% decline. On the derivatives front, open interest surged by 11.77%, with futures and options turnover indicating strong market participation and bullish positioning. The stock traded above all major moving averages, reinforcing the technical strength. Despite a slight underperformance relative to the sector on the day, the overall momentum remained positive, supported by a Mojo Score of 71.0 and a Buy rating.

Thursday, 22 January 2026: Intraday Low Amid Sector Pressure

The stock faced short-term pressure on 22 January, declining 4.20% to close at Rs.667.75 after hitting an intraday low of Rs.674.45. This drop contrasted with the Sensex’s 0.76% gain and was driven by sector-wide weakness in non-ferrous metals, which fell 2.02%. Profit-taking following recent gains and the stock’s proximity to its 52-week high likely contributed to the correction. Despite the setback, Hindustan Zinc remained above all key moving averages, indicating that the longer-term uptrend was intact. The stock’s relative underperformance on this day highlights the sector-specific challenges amid a broadly positive market environment.

Friday, 23 January 2026: New 52-Week High with Significant Gap Up

Hindustan Zinc Ltd closed the week on a strong note, surging 4.66% to Rs.698.85 and hitting a new 52-week high of Rs.705. The stock opened with a 4.49% gap up and maintained momentum throughout the session, outperforming the Metal - Non Ferrous sector’s 3.78% gain and the Sensex’s flat performance. Intraday volatility was elevated at 64.25%, reflecting active trading interest. Technical indicators remained bullish, with the stock trading above all major moving averages. The company’s market capitalisation stood at Rs.2,82,146 crores, underscoring its dominant position in the sector. The Mojo Score of 71.0 and Buy rating reaffirmed the positive outlook.

Key Takeaways

Positive Signals: Hindustan Zinc Ltd demonstrated strong price momentum with a 9.65% weekly gain, significantly outperforming the Sensex’s 3.31% decline. The stock hit multiple new 52-week highs, reflecting sustained investor interest and technical strength. Robust quarterly results with record net sales and profitability underpinned the rally, alongside an upgraded financial trend and Mojo Grade to Buy. The surge in derivatives open interest and volume highlighted increased market participation and bullish positioning. The company’s dominant market capitalisation and sector leadership further support its strong market standing.

Cautionary Notes: The stock experienced a notable intraday decline on 22 January amid sector weakness and profit-taking, indicating short-term volatility risk. The high promoter share pledge ratio of 90.28% remains a risk factor that could pressure the stock during market downturns. Valuation metrics suggest a premium positioning, with elevated enterprise value to capital employed ratios and modest long-term profit growth rates. The company’s low cash and cash equivalents balance may constrain near-term liquidity flexibility.

Conclusion

Hindustan Zinc Ltd’s performance over the week ending 23 January 2026 was marked by strong gains, multiple new 52-week highs, and robust financial results that outpaced broader market declines. The stock’s technical positioning above key moving averages, combined with increased derivatives market activity and a positive Mojo Score upgrade, highlight sustained bullish momentum. While short-term volatility and valuation premiums warrant attention, the company’s dominant sector position and operational strength underpin its resilience. Investors should monitor ongoing sector dynamics and promoter share pledging levels as part of their assessment of the stock’s outlook.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →