Investors faced another rough session on January 8, 2026, as weakness continued across equities and commodities. The Indian stock market extended its decline, with the Sensex trading around 84,424 at noon, down more than 536 points.

The sell-off wasn’t limited to equities. Silver, zinc and other industrial metals also witnessed sharp declines, impacting metal stocks as well as exchange-traded funds (ETFs).

Silver Prices See Sharp Correction

Silver prices have been under pressure for the past few sessions. On Multi Commodity Exchange of India (MCX):

• March silver futures dropped over ₹3,000 to ₹2,47,529 per kg

• May futures fell more than ₹3,300 to ₹2,54,876 per kg

• July futures declined by over ₹4,000 to ₹2,62,399 per kg

Just a day earlier, March silver had touched a record high of ₹2,59,692 per kg, highlighting how sudden the correction has been. Analysts attribute the fall mainly to profit booking after a strong rally, along with pressure from a stronger US dollar ahead of key US employment data.

Hindustan Zinc Shares Slip

The weakness in silver prices also weighed on Hindustan Zinc, India’s largest silver producer. The stock fell nearly 5% on January 7 to a three-week low of around ₹599.25, marking its second straight session of decline.

• Down over 3% in the last 5 days

• Up 22% over the past month

• Up 37% over the past six months

Despite strong medium-term gains, recent volatility in silver has triggered short-term selling pressure.

Silver ETFs Underperform

The fall in silver prices spilled over into ETFs tracking the metal. Most silver ETFs declined by over 3%, including products from Edelweiss, HDFC, UTI, Axis, Zerodha, Groww, Tata, SBI, DSP, Aditya Birla, Mirae Asset, Nippon and ICICI Prudential.
Other funds such as Kotak Silver ETF, Motilal Oswal Silver ETF and 360 ONE Silver ETF also slipped close to 3%.

This marked the second consecutive weak session for silver ETFs.

What Should Investors Do?

Market experts remain divided in the short term but constructive over the medium term.

• Agarwal of VSRK Capital cautions that silver is more volatile than gold and currently shows signs of overheating. He advises waiting for prices to stabilise before starting fresh investments, noting that post-rally volatility can last for years.

• Harshal Dasani of INVasset PMS remains medium-term bullish on silver, citing rising demand from electronics, solar energy and electrification, while supply has stayed constrained. He believes the recent fall reflects profit booking and liquidation after strong gains in 2025.

In the near term, analysts agree that US dollar movement and interest rate expectations will be key drivers for both silver and gold prices.