Veteran investor Mukul Agrawal has made a significant investment in Hindustan Construction Company (HCC), acquiring a 1.68% stake through the purchase of 4.40 crore shares. The investment, valued at ₹86.00 crore according to Trendlyne data, has already shown positive market response with the stock rallying nearly 10% over the past two trading sessions.

Investment Details and Market Performance

The market veteran and founder of Param Capital Group, with over two decades of capital market experience, made this strategic entry after a sharp correction in the stock. HCC shares have experienced significant volatility, falling over 30% in the past year despite delivering impressive long-term returns.

Agrawal's Portfolio Performance

Despite pressure on smallcap stocks for most of 2025, Agrawal's ₹6,500.00-crore portfolio has demonstrated resilience with five multibagger performers during the year. These standout investments include Oseal Devices, Zelio E-Mobility, Monolithisch India, Zota Health Care, and ASM Technologies, showcasing his ability to identify value opportunities across market cycles.

Recent Corporate Developments

HCC has undertaken several significant corporate actions recently that may have influenced Agrawal's investment decision. The company successfully completed a rights issue that was oversubscribed by 200%, with applications totaling approximately ₹2,008.00 crore against an issue size of ₹1,000.00 crore.

Vice Chairman and Managing Director Arjun Dhawan commented that the strong response would help strengthen HCC's balance sheet, aid ongoing deleveraging efforts, and support the company's long-term growth strategy.

Major Contract Win

In a separate development, HCC secured a substantial infrastructure contract worth ₹901.00 crore from the Northeast Frontier Railway (NFR). The comprehensive project involves construction of a 3.5-kilometer main tunnel and includes end-to-end design, engineering, and commissioning services. The scope encompasses design and proof-checking of broad-gauge ballast-less track, along with supply, installation, testing, and commissioning of all associated railway systems and structures.

Current Trading Activity

Shares of Hindustan Construction Company were trading at ₹19.40, representing a 4% increase from the previous close of ₹18.71 on the BSE. The company operates across multiple infrastructure segments including transportation, power, and water, having executed several large infrastructure projects across India.

Hindustan Zinc shares surged over 3% on January 12 as silver prices rebounded strongly after a sharp decline earlier in the week. The company, which is India's largest silver producer, saw its stock price rise to ₹625.00 per share during early trading hours as investors responded positively to the precious metal's rally.

Silver Futures Reach Record Highs

Silver futures demonstrated exceptional strength across all contract periods on the Multi Commodity Exchange of India (MCX):

Spot silver prices reached a fresh lifetime high of $83.96 per ounce, reflecting strong global demand for the precious metal.

Silver ETFs Mirror Price Surge

Silver exchange-traded funds experienced significant gains, closely tracking the underlying commodity's performance. Multiple silver ETFs recorded gains of approximately 4%:

• Zerodha Silver ETF: +4.00%
• UTI Silver ETF, DSP Silver ETF, Axis Silver ETF: ~4.00% each
• ICICI Pru Silver ETF, Nippon Silver ETF: ~4.00% each
• Motilal Oswal Silver ETF, SBI Silver ETF: ~4.00% each
• Mirae Asset Silver ETF, Tata Silver ETF, HDFC Silver ETF: ~4.00% each

These ETFs have delivered returns of up to 176% over the past year as silver prices experienced significant appreciation.

Hindustan Zinc Stock Performance

Despite the recent surge, Hindustan Zinc shares had declined more than 3% over the previous five days due to profit-booking in silver prices. However, the company's longer-term performance remains strong:

Market Drivers and Outlook

Geopolitical tensions and potential tariff policies are supporting safe-haven demand for precious metals. US President Donald Trump is considering imposing tariffs as high as 500% on countries purchasing Russian oil, which could escalate trade tensions and further boost demand for gold and silver.

According to Kaynat Chainwala, AVP Commodity Research at Kotak Securities, these developments could pressure major buyers like China, India, and Brazil to halt purchases of discounted Russian crude, potentially escalating US-China trade tensions and supporting safe-haven demand.

However, Ross Maxwell, Global Strategy Operations Lead at VT Markets, advised caution regarding the sustainability of current price levels. He noted that while industrial demand from green technologies supports long-term fundamentals, short-term rallies often attract rapid inflows that can reverse quickly, leading to potential sharp pullbacks.