Hindustan Zinc, Copper Shares Tumble as Silver Prices Fall, ETFs Plunge

• Hindustan Zinc shares fell 4% and Hindustan Copper dropped 5% due to a decline in silver prices and silver-linked ETFs.
• Silver prices on MCX decreased over 2%, while silver ETFs experienced significant losses of 10-14%.
• The sell-off in silver ETFs follows a sharp increase in leveraged positions over recent weeks, as noted by the National Stock Exchange's Margin Trading Facility data.
• Zerodha founder Nithin Kamath warned about the risks of rapid growth in margin trading, stating that liquidity dries up during market drawdowns, leading to forced selling.
• Kamath cautioned that a major market correction could trigger synchronized liquidations of leveraged positions, causing significant volatility and 'mayhem'.

Why It Matters: Hindustan Zinc and Copper shares slid as falling silver prices and leveraged ETF positions raised market concerns.