Shares of Vedanta dropped 10% today, hitting the lower circuit, as a sharp and sudden selloff across global metal markets weighed heavily on metal and mining stocks during the Budget Day session.
Vedanta’s decline comes amid a broad-based crash in metals, with silver, copper, aluminium and zinc witnessing steep intraday falls after hitting record or multi-year highs earlier this week. The sharp correction triggered aggressive profit booking across the commodity complex, directly impacting companies with high exposure to metal prices.
Global metal prices came under pressure after expectations of aggressive U.S. interest rate cuts faded, leading to a stronger U.S. dollar. A firmer dollar typically weighs on commodity prices, prompting funds and traders to unwind leveraged positions across metals. This led to forced selling, stop-loss triggers, and rapid downside momentum in futures markets.
Vedanta, with its diversified exposure to aluminium, zinc, copper and other base metals, was particularly impacted as all major underlying commodities corrected simultaneously. The selloff was further amplified by thin liquidity, heightened volatility, and risk-off sentiment ahead of the China Lunar New Year holiday, when the world’s largest metals consumer temporarily shuts markets.
There has been no company-specific negative announcement related to Vedanta. The stock’s sharp fall reflects sector-wide pressure, profit booking after a strong rally, and a sudden reversal in global commodity sentiment rather than any deterioration in fundamentals.
Overall, Vedanta shares declined sharply as investors reacted to the metal market crash, dollar strength, and unwinding of speculative positions, dragging metal-linked stocks lower across the board.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
