The shares of Hindustan Zinc surged nearly 6 percent to trade at Rs 496 apiece on June 5 on the back of a notable surge in silver prices in India.

Hindustan Zinc is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity. The sharp rise in the bullion's prices is expected to further boost the stock.

Silver futures with July expiry on the Multi Commodity Exchange (MCX) jumped nearly 3 percent to hit an all-time high of Rs 1.04 lakh per kilogram. Silver's spot price on the MCX stood at Rs 1.01 lakh per kilogram.

The rise in the silver prices comes on the back of ongoing global geopolitical tensions. "The escalation of geo-political tensions between Russia-Ukraine is leading investors to place their bets on precious metals like gold and silver," said Prathamesh Mallya from Angel One.

"Silver has rallied in the international markets from lows of around $32.76/ounce on 30th May 2025, to around highs of $34.78 on 2nd June 2025, a rally of around 6 percent. On the MCX, silver futures have rallied from lows of Rs. 96742/kg on 30th May 1015 to highs of Rs.101350/kg as on 3rd June, a rally of around 5 percent … Continued escalation of war between Russia-Ukraine will lead to further rally in silver in the near term and MCX futures might soon move higher towards Rs.1,06,000/kg mark. Traders are advised caution as volatility will be key going forward," Mallya further said.

While rising silver prices have boosted the stock, US President Donald Trump's tariffs continues to keep the investors on the edge. Hindustan Zinc shares have gained nearly 16 percent in the past one month, but dropped nearly 27 percent in the past one year.