Hindustan Zinc shares surged nearly 8 per cent today to a fresh 52-week high of Rs 271 after the global price of zinc hit a 5-year high on China manufacturing data.
Activity in China's manufacturing sector expanded at a faster pace than expected in October, an official survey showed on Tuesday, adding to views the world's second-largest economy is stabilising thanks to a construction boom.
According to Bloomberg, zinc prices rose to 1.1 per cent on the London Metal Exchange to $2,485 a ton, its highest since August 2011.
Zinc's 54-percent gain this year makes it the LME's top performer, according to Bloomberg, amid dwindling supply and demand in the steel sector.
Tracking a surge in zinc prices, shares of Hindustan Zinc have rallied this year. Hindustan Zinc shares have advanced 63 per cent in the past six months as compared to a 12 per cent gain in the broader Nifty50 index.
Hindustan Zinc had reported a net profit of Rs 1,902 crore in the September quarter, up 83 per cent quarter-on-quarter on a 38 per cent sequential rise in revenues to Rs 3,820 crore.
At 11:45 a.m., Hindustan Zinc shares were up 7 per cent at Rs 271, outperforming the Nifty which was up 0.20 per cent.
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