Hindustan Zinc Ltd Falls 10.02%: 5 Key Factors Behind the Sharp Weekly Decline

Jan 31 2026 03:01 PM IST
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Hindustan Zinc Ltd experienced a volatile week ending 30 January 2026, with its stock price declining by 10.02% from Rs.698.85 to Rs.628.85, sharply underperforming the Sensex which gained 1.62% over the same period. The week was marked by a strong start with new 52-week highs, followed by increasing volatility, heavy put option activity, and a significant volume surge amid sectoral headwinds and market concerns.

Key Events This Week

Jan 27: New 52-week high (Rs.731.1)

Jan 28: New 52-week high of Rs.732.6 and heavy put options activity

Jan 29: Exceptional volume surge amid sector gains

Jan 30: Week closes at Rs.628.85 (-10.02%) with significant gap down and price pressure

Week Open
Rs.698.85
Week Close
Rs.628.85
-10.02%
Week High
Rs.732.6
Sensex Change
+1.62%

Strong Start with New 52-Week Highs on 27 and 28 January

Hindustan Zinc Ltd began the week on a bullish note, opening 3.77% higher on 27 January 2026 and reaching a new 52-week high of Rs.731.1. The stock closed the day at Rs.726.60, up 3.97%, significantly outperforming the Sensex’s 0.50% gain. This surge was supported by robust fundamentals including a high ROCE of 85.81%, record quarterly net sales of Rs.10,980 crores, and a 47.6% increase in quarterly PAT to Rs.3,897.28 crores.

Despite the broader market’s mixed signals and some sectoral volatility, Hindustan Zinc maintained its position above all key moving averages, signalling sustained momentum. The Metals - Non Ferrous sector gained 2.77% on 27 January, with Hindustan Zinc slightly underperforming the sector but still showing strong relative strength versus the Sensex.

On 28 January, the stock touched an even higher 52-week peak of Rs.732.6 but closed lower at Rs.708.10, down 2.55%, amid profit-booking and sector underperformance. The day saw heavy put options activity and a 10.6% surge in open interest, indicating increased market participation and hedging activity despite the price dip. The stock’s intraday low of Rs.705 reflected short-term selling pressure, contrasting with the Sensex’s 1.12% gain.

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Volume Surge and Mixed Price Action on 29 January

On 29 January, Hindustan Zinc saw exceptional trading volumes with over 1.86 crore shares changing hands, a significant increase compared to recent averages. The stock closed at Rs.715.60, up 1.06%, while the Sensex gained a modest 0.22%. Despite the positive sector environment, the stock underperformed the Metal - Non Ferrous sector’s 2.48% gain, suggesting some profit-taking or sector rotation.

The surge in delivery volumes by 27.99% indicated genuine accumulation by long-term investors, supporting the stock’s technical strength above key moving averages. The large-cap status and a Mojo Score of 71.0 with a Buy grade further reinforced the stock’s standing amid renewed investor interest in the non-ferrous metals sector.

Sharp Decline and Elevated Volatility on 30 January

The week ended on a challenging note for Hindustan Zinc Ltd, with the stock plunging 12.12% on 30 January to close at Rs.628.85. The day opened with a significant gap down of 3.43%, followed by an intraday low of Rs.666.65, marking a 6.84% drop from the previous close. The stock’s intraday volatility was notably high at 76.53%, reflecting unsettled trading conditions amid sectoral weakness.

Hindustan Zinc underperformed the Non-Ferrous Metals sector, which declined 4.5%, and the Sensex, which fell 0.22%. Despite the sharp drop, the stock remained above its 20-day, 50-day, 100-day, and 200-day moving averages, though it traded below the 5-day average, signalling short-term weakness. The elevated volume of over 1.3 crore shares traded, with a 102.77% increase in delivery volume the previous day, suggested active participation and potential absorption of selling pressure by institutional investors.

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Daily Price Comparison: Hindustan Zinc Ltd vs Sensex (27-30 Jan 2026)

Date Stock Price Day Change Sensex Day Change
2026-01-27 Rs.726.60 +3.97% 35,786.84 +0.50%
2026-01-28 Rs.708.10 -2.55% 36,188.16 +1.12%
2026-01-29 Rs.715.60 +1.06% 36,266.59 +0.22%
2026-01-30 Rs.628.85 -12.12% 36,185.03 -0.22%

Key Takeaways

Positive Signals: The stock’s initial surge to new 52-week highs on 27 and 28 January was supported by strong quarterly results, high ROCE, and robust fundamentals. Elevated delivery volumes and exceptional trading activity on 29 January indicate sustained investor interest and accumulation by long-term holders. The stock’s position above major moving averages suggests a medium- to long-term uptrend remains intact despite short-term volatility.

Cautionary Signals: The sharp 10.02% weekly decline, driven largely by the 12.12% drop on 30 January, reflects significant short-term selling pressure and sectoral headwinds. Heavy put options activity and a 10.6% surge in open interest on 28 January point to increased hedging and cautious positioning. The high promoter share pledge of 90.28% remains a risk factor that could exacerbate price volatility during market downturns.

Conclusion

Hindustan Zinc Ltd’s week was characterised by a strong start with record highs and robust fundamentals, followed by increasing volatility and a sharp correction amid sector weakness and market concerns. While the stock’s technical positioning and volume patterns suggest underlying strength and institutional accumulation, the significant price decline on 30 January highlights the challenges posed by short-term profit-taking and broader commodity market pressures. Investors should monitor the evolving market dynamics, open interest trends, and sector developments closely to assess the stock’s near-term trajectory within the non-ferrous metals space.

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