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What is the story about?
Vedanta Ltd. shares declined up to 10% on Sunday, February 1, extending Friday's losses and in-line with the sell-off witnessed across its othermetal peers.
However, the stock later recovered nearly three-quarters of those losses, recovering as much as 7% from the lows of the session. At the day's low, Vedanta had lost ₹54,000 crore in market capitalisation over the last two sessions.
A major reason behind the early fall was the sell-off in its other metal peers, including its subsidiary Hindustan Zinc, which fell up to 18% on Sunday.
However, Silver, as a Sum of Total Parts (SOTP) does not have a significant contribution to Vedanta's business. That belongs to its subsidiary Hindustan Zinc. Vedanta, the parent company, prices itself as an Aluminum play
Gold on the Multi-Commodity Exchange (MCX) was back above ₹1.40 lakh/10 g and silver above ₹2.70 lakh per kg around 10 am on Sunday. Gold and Silver had opened with losses of nearly 6%, each, on MCX, extending the decline to around 9% as trade progressed.
Vedanta's subsidiary Hindustan Zinc Ltd. had also declined up to 10% in trade on Sunday, extending its previous session's losses. Vedanta owns 60.7% stake in Hindustan Zinc post the recently concluded offer for sale. Hindustan Copper Ltd. shares also declined up to 10%.
The sharp decline came on the back of commodity-sensitive stocks bearing the brunt of a sharp correction in precious metals, with gold and silver prices declining globally on Friday.
The sell-off occurred overnight in global markets after Indian equities had shut on Friday.
Silver prices declined 37% intraday on Friday, while gold had plunged 12% in the spot market, marking its steepest single-session decline since the early 1980s and the sharpest decline on record for silver.
The sharp adjustment is also expected to reflect in ETFs, even after a 15-20% decline already witnessed on Friday.
Last week, Vedanta also reported its third quarter earnings, which were higher on a year-on-year basis across most parameters.
Its net profit increased 60.1% to ₹5,710 crore, while its other income increased to ₹492 crore from ₹339 crore in the previous year.
Its revenue increased 19% to ₹45,899 crore. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 37% to ₹6,866 crore while its margin stood at 29.4%.
Vedanta's Aluminium business EBITDA was at ₹7,023 crore, higher than the average poll of ₹6,821 crore. The EBITDA was aided by higher prices, but was partially offset by hedged quantities.
Vedanta shares declined up to 10% in trade on Sunday. However, the stock had recovered over 6% from its lows and was trading 4.3% lower at 10 am on Sunday.
Also Read: Gold, silver price crash: Should investors buy the dip?
However, the stock later recovered nearly three-quarters of those losses, recovering as much as 7% from the lows of the session. At the day's low, Vedanta had lost ₹54,000 crore in market capitalisation over the last two sessions.
A major reason behind the early fall was the sell-off in its other metal peers, including its subsidiary Hindustan Zinc, which fell up to 18% on Sunday.
However, Silver, as a Sum of Total Parts (SOTP) does not have a significant contribution to Vedanta's business. That belongs to its subsidiary Hindustan Zinc. Vedanta, the parent company, prices itself as an Aluminum play
Gold on the Multi-Commodity Exchange (MCX) was back above ₹1.40 lakh/10 g and silver above ₹2.70 lakh per kg around 10 am on Sunday. Gold and Silver had opened with losses of nearly 6%, each, on MCX, extending the decline to around 9% as trade progressed.
Vedanta's subsidiary Hindustan Zinc Ltd. had also declined up to 10% in trade on Sunday, extending its previous session's losses. Vedanta owns 60.7% stake in Hindustan Zinc post the recently concluded offer for sale. Hindustan Copper Ltd. shares also declined up to 10%.
The sharp decline came on the back of commodity-sensitive stocks bearing the brunt of a sharp correction in precious metals, with gold and silver prices declining globally on Friday.
The sell-off occurred overnight in global markets after Indian equities had shut on Friday.
Silver prices declined 37% intraday on Friday, while gold had plunged 12% in the spot market, marking its steepest single-session decline since the early 1980s and the sharpest decline on record for silver.
The sharp adjustment is also expected to reflect in ETFs, even after a 15-20% decline already witnessed on Friday.
Last week, Vedanta also reported its third quarter earnings, which were higher on a year-on-year basis across most parameters.
Its net profit increased 60.1% to ₹5,710 crore, while its other income increased to ₹492 crore from ₹339 crore in the previous year.
Its revenue increased 19% to ₹45,899 crore. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 37% to ₹6,866 crore while its margin stood at 29.4%.
Vedanta's Aluminium business EBITDA was at ₹7,023 crore, higher than the average poll of ₹6,821 crore. The EBITDA was aided by higher prices, but was partially offset by hedged quantities.
Vedanta shares declined up to 10% in trade on Sunday. However, the stock had recovered over 6% from its lows and was trading 4.3% lower at 10 am on Sunday.
Also Read: Gold, silver price crash: Should investors buy the dip?
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