Why is Hindustan Zinc falling/rising?
As of 09-Jul, Hindustan Zinc Ltd's stock price is at 425.05, down 2.56% and has declined for eight consecutive days, totaling a 5.76% drop. The stock has underperformed significantly over various time frames, with a 1-year return of -36.88%, and is trading below its moving averages, indicating a bearish trend despite a high dividend yield.
As of 09-Jul, Hindustan Zinc Ltd's stock price is currently at 425.05, reflecting a decrease of 11.15 points or 2.56%. The stock has been on a downward trend, losing value for the last eight consecutive days, resulting in a total decline of 5.76% during this period. It has underperformed significantly over various time frames, with a 1-week return of -4.84%, a 1-month return of -19.06%, and a staggering 1-year return of -36.88%. The stock is trading below its moving averages across multiple time frames, indicating a bearish trend. Additionally, the company has a high dividend yield of 4.36%, but this has not been enough to counteract the negative sentiment. Factors contributing to the stock's decline include a low delivery volume, which has decreased by 38.08% compared to the 5-day average, and a high percentage of pledged promoter shares, which adds downward pressure in a falling market.In the broader market context, the Sensex has shown a slight increase of 0.15% over the past week, contrasting sharply with Hindustan Zinc's negative performance. While the metal sector, particularly non-ferrous metals, has also experienced a decline of 2.41%, Hindustan Zinc's performance has been notably worse. The company's long-term growth prospects appear poor, with an operating profit growth rate of only 1.09% over the last five years, and it is trading at a premium compared to its peers. Despite positive quarterly results and a strong market position, the overall sentiment remains negative due to the stock's significant underperformance relative to the broader market and its own historical returns.
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