A sharp upswing in silver prices on Wednesday spilled over into equities and securities markets, lifting commodity-linked stocks and exchange-traded funds (ETFs).
Shares of Multi Commodity Exchange of India (MCX) surged more than 3 per cent to around Rs 2,473 in early afternoon trade, extending a strong rally that has seen the stock gain over 125 per cent in the past year amid rising activity in precious metals contracts.
Metal stocks also tracked the rally in silver. Hindustan Zinc climbed 2.8 per cent to Rs 614, supported by firm sentiment around non-ferrous and precious metals demand. The stock has advanced more than 51 per cent over the last 12 months.
The strength was equally evident in passive investment products, with silver ETFs gaining over 1 per cent across fund houses. Products from ICICI Prudential AMC, Nippon India Mutual Fund, SBI Mutual Fund and Tata Asset Management traded higher in early deals. Gold ETFs also edged up, though gains were more pronounced in silver-linked instruments.
The move reflects a broader strengthening trend in precious metals. According to Motilal Oswal Financial Services’ latest Precious Metals Quarterly Report, gold continues to be supported by geopolitical tensions, tightening physical supply and waning confidence in global monetary frameworks.
The brokerage said gold’s role as non-sovereign money is becoming increasingly prominent as fiscal pressures build and questions over monetary independence intensify. Silver, meanwhile, is drawing support from both investment demand and its industrial applications, reinforcing the positive momentum across the precious metals complex.