Shares of Vedanta declined sharply on Friday, January 30, as a broad sell-off across the metals complex weighed on sentiment. The stock was trading at Rs 720.75, down 5.95%, amid sharp corrections in silver, copper, and other base and precious metals.
The primary reason behind the fall in Vedanta shares is the steep decline in metal prices, particularly silver and copper, which saw heavy profit booking after hitting record or multi-year highs earlier this week. Silver futures on the Multi Commodity Exchange dropped over 5%, while global silver prices fell close to 4%, triggering selling pressure across metal-linked stocks.
Copper prices also corrected sharply, adding to the weakness. Copper futures on MCX slipped over 2%, while global copper prices dropped more than 3% to around $6 per pound, reversing gains from the previous session. The sell-off came as investors locked in profits after a strong rally across industrial and precious metals.
Vedanta’s diversified exposure to zinc, aluminium, copper, silver, and iron ore made the stock vulnerable to the broad-based decline in commodity prices. As metal prices cooled sharply, market participants reassessed near-term earnings visibility for mining and metal companies, leading to widespread selling.
The correction was driven largely by aggressive profit booking after an overheated rally. Silver had gained more than 50% in January, while copper and other metals also saw sharp recent gains, prompting traders to reduce positions amid elevated volatility.
Adding to the pressure was a rebound in the US dollar, which typically weighs on commodity prices by making dollar-denominated metals more expensive for non-US buyers. The compression of India’s premium over global metal prices further amplified the downside move in domestic markets.
Overall, the fall in Vedanta shares reflects commodity-led weakness following sharp corrections in silver and copper prices, rather than any company-specific development, with volatility across the metals space remaining high.
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.
