Hindustan Zinc stock hits 20% upper circuit to touch new record high; up 133% in CY24 so far – here's why

livemint.com:

Hindustan Zinc were locked in the 20% upper circuit limit in today's intraday session, reaching an all-time high of ₹743.60 apiece. This impressive rally has pushed the stock's gains to 133% for the year so far. This rally marks the stock's biggest annual gain since 2009, when it delivered a remarkable 257% return.

If the stock maintains its current momentum for the rest of 2024, it could surpass its 2009 performance record. The company's market capitalisation crossed the ₹3 lakh crore mark for the first time in today's trade, reaching ₹3.13 lakh crore. Notably, market capitalisation has increased by over ₹1.79 lakh crore (57% addition) in CY24 alone.

Also Read: Explained: What's driving the ongoing uptrend in metal stocks? The spectacular rally in Hindustan Zinc shares was largely attributed to a substantial surge in base metal prices, following China’s announcement of significant, bold measures to revitalise its struggling property sector. Additionally, investor optimism surged after industrial output in the world's second-largest economy jumped in April, beating analysts' estimates. The country's export data also showed strong growth in April, hitting a 3-month high, further boosting sentiment that the demand recovery is gaining globally.

Amid this backdrop, prices of zinc, lead, aluminum, and copper have risen sharply in recent sessions, continuing the bull momentum that began in mid-February. Copper reached a record high of $11,104.50 per tonne on Monday, while LME zinc, aluminum, lead, and tin also saw significant gains. Similarly, spot silver prices hit an 11-year high in the previous trading session, reaching $32.15 per ounce.