HDFC Silver ETF Falls Over 11%: Metal Sell-Off Intensifies, Volatility Weighs on Prices

Mumbai, February 5, 2026:HDFC Silver ETF witnessed a sharp intraday decline on February 5, falling over 11% as selling pressure intensified across metal-linked investment products. The ETF was impacted by weakness in silver prices amid a broader risk-off sentiment in commodities, with investors turning cautious on volatile assets.

As of 1:35 pm IST, the ETF was trading at ₹236.75 on the NSE, down ₹29.91 or 11.22% from its previous close of ₹266.66. The move reflected sustained selling through the session rather than a brief volatility spike, underscoring heightened sensitivity to global commodity cues.

Why the HDFC Silver ETF Price Moved

The primary cause of the decline was a severe reversal of silver prices and general metals underperformance that had been influenced by the turbulent global market and the changing risk mood.Silver is more volatile than gold, and as a result, it responds to macro developments more quickly, such as currency fluctuations and investor positioning.

Also, ETF-related issues like liquidity issues, increasing bid-ask spreads, and one-time discounts to indicative NAV (iNAV) compounded the decline, and ETF prices fell more than the underlying metal.

Stock Performance Snapshot

HDFC Silver ETF witnessed a sharp decline during the trading session on February 5. As of 1:35 pm IST, the ETF was trading at ₹236.75 on the NSE, down ₹29.91 or 11.22% from its previous close of ₹266.66. The steep fall reflected significant selling pressure through the day, tracking weakness in silver prices and cautious sentiment across commodity-linked instruments.

During intraday trade, the ETF opened higher at ₹248.00, which also marked the day’s high, before slipping steadily to an intraday low of ₹225.65. Despite some stabilisation in the afternoon, the ETF continued to trade well below its previous close, indicating sustained pressure rather than a brief volatility spike.

What This Means for Investors

In the short term, sentiment around silver ETFs remains cautious, as elevated volatility in the underlying metal is translating into sharp price swings. The 11.22% intraday fall in HDFC Silver ETF highlights how commodity-linked ETFs can see amplified moves during periods of risk aversion, wider spreads, and thin liquidity, making short-term returns more volatile than spot silver prices.

From a medium- to long-term perspective, the correction reinforces the role of silver ETFs as portfolio diversifiers rather than trading instruments. While temporary deviations from NAV can emerge during stressed sessions, these typically normalise over time.

Investors should remain mindful of silver’s sensitivity to global macro cues and currency movements, which can continue to influence near-term performance.

About the Fund

HDFC Silver ETF is an exchange-traded fund that is expected to offer returns that are closely matched to the performance of physical silver, subject to tracking error.

It is traded in the Indian stock markets, such as NSE, and will provide the investors with a market-linked path to exposure to silver without the actual possession of the metal.

The fund is among the expanding segments of commodity ETFs in India that have experienced greater investment by both retail and institutional investors in search of diversification.

Ref: https://www.nseindia.com/get-quote/equity/HDFCSILVER/HDFC-Mutual-Fund—HDFC-Silver-ETF