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Vedanta Group stocks, including Vedanta Power, Vedanta Iron and Steel, and Hindustan Zinc, came under pressure on Tuesday, with shares falling as much as 5% amid a volatile market. Vedanta Iron and Steel and Vedanta Power emerged as the biggest losers among the group companies, declining up to 4.9%. Vedanta Oil and Gas also witnessed selling pressure, with its shares falling 4.3% during the session. The flagship Vedanta stock declined more than 3% in intraday trading on September 15. Other group companies, including Vedanta Aluminium and Hindustan Zinc, also traded lower, with shares falling around 2%. The broader Indian equity market also remained under pressure on Tuesday. The 30-share Sensex fell nearly 400 points, or 0.50%, to an intraday low of 74,403, while the Nifty50 declined nearly 150 points, or 0.60%, to 23,252 during the session. According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, the Vedanta Group stocks declined around 3–5% today, largely reflecting a combination of global commodity weakness, profit booking and a broader risk-off environment rather than any major company-specific negative development. The decline came alongside pressure in the broader metal pack as investors turned cautious after a strong run in several commodity-related stocks. Vedanta has significant exposure to aluminium, zinc, lead, silver and oil & gas, making its earnings and valuations particularly sensitive to global commodity-price movements. “Any correction in metal prices can therefore trigger disproportionate selling in high-beta stocks such as Vedanta. The broader macroeconomic environment also added pressure. Brent crude remained above $100 a barrel, with prices around $107 amid continuing geopolitical concerns and disruption risks. Although higher crude can benefit Vedanta's oil and gas business, expensive crude is negative for the Indian economy because it increases imported inflation and puts pressure on the rupee. More importantly, higher oil prices have increased concerns that global central banks may maintain a tighter monetary stance for longer. The US 10-year Treasury yield moving above 5% has further increased the attractiveness of fixed-income assets and reduced risk appetite towards emerging-market equities. This environment generally affects cyclical and highly leveraged stocks more severely,” she said. Srivastava further added that the rupee's weakness near ₹95–96 per US dollar and continued foreign-investor risk reduction have added to volatility. Vedanta's recent strong performance also made the stock vulnerable to profit booking when market sentiment suddenly deteriorated. “today's decline should not be interpreted as a fundamental deterioration in Vedanta's business. The group's long-term investment case remains linked to commodity prices, strong cash generation, deleveraging and the value-unlocking potential following the demerger. Therefore, today's 3–5% correction appears more macro- and commodity-driven than company-specific, although sustained weakness in global metals, crude above $100 and elevated US yields could keep Vedanta under pressure in the near term,” said Srivastava. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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