Silver futures fell almost 3%, while gold fell more than 0.6%. Base metals also saw losses, with copper, zinc and aluminum futures trading lower during the day.Reflecting the broad-based weakness, the Nifty Metal index fell almost 3% with all its constituents trading in negative territory. Stocks like Hindalco, Hindustan Zinc, JSW Steel, NMDC, NALCO, Tata Steel and Jindal Steel were among the notable laggards.
The pressure in the metals sector can be attributed to profit booking from recent highs, coupled with a sharp correction in commodity prices, which weighed on metal producers across the board.
Vedanta target price and technical presentation
Commenting on the near-term prospects for the stock, Kunal Parar, vice-president and technical research analyst at Choice Equity Broking, told ET NOW Swadesh that Vedanta’s shares are posting gains after hitting record highs near Rs 630.
From a trading perspective, Parar said his view remains cautious in the near term as there may be some cooling off. He added that if the stock corrects towards the Rs 580 level, it could provide a buying opportunity, noting that Rs 580 acts as an immediate support zone for Vedanta.
Vedanta shares details about the demerger plan
Separately, Vedanta shared new details of the proposed demerger on Wednesday after the Mumbai bench of the NCLT approved the company’s plan to split into independent, pure-play entities.
Post-demerger, Vedanta Limited will be restructured into five separate listed companies, each with a clear strategic focus and specific capital structure.
According to the company’s announcement, shareholders of Vedanta Limited will receive one share each in the four newly demerged entities – Vedanta Aluminum, Vedanta Oil & Gas, Vedanta Power (subject to approval) and Vedanta Iron & Steel – for every share in Vedanta Limited.
The company said the transition is aimed at creating focused businesses that align with long-term global and domestic demand trends.
Also read:Silver price falls by Rs 10,000 per day. Is the white metal’s rally in jeopardy?
In a separate development, Agnivesh Agarwal, son of Vedanta chairman Anil Agarwal, died on Wednesday due to cardiac arrest following a skiing accident in the United States.
Anil Agarwal confirmed the news and shared a post stating that his son was recovering before the sudden tragedy.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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