Explained: Why Hindustan Zinc shares are down 2% despite silver prices soaring to Rs 4 lakh

Hindustan Zinc shares have fallen about 2% over the last two sessions despite silver prices hitting a record Rs 4 lakh, reflecting a disconnect between the commodity rally and the stock. The decline is not due to fundamentals but is driven by short-term supply pressure from promoter Vedanta’s ongoing OFS, which has added fresh shares to the market through a base sale and a greenshoe option.