Why is Vedanta share price skyrocketing? — explained
Vedanta shares: After ushering in the new year 2024, Vedanta share price remained in base-building mode till the middle of March 2024. However, after bottoming out at ₹250 apiece levels in mid-March, Vedanta share price has remained in an uptrend. Vedanta share price ended on Friday at around ₹385 apiece, which means the Vedanta share has risen to the tune of 50 percent since mid-March.
Vedanta shares have been touching a 52-week high regularly. In the truncated week gone by, Vedanta share price touched a 52-week high in three out of four sessions. Vedanta shares failed to touch a 52-week high on Tuesday whereas the Indian stock market was closed on Wednesday for Ram Navami.
According to stock market experts, Vedanta shares are in an uptrend these days due to the global surge in commodity prices, particularly metals like aluminium and copper, which constitute its core business. They said that Vedanta share price has done well on the back of strong quarterly business updates from metal companies as well. However, they maintained that the debt level of the metal company will continue to remain a big concern for Vedanta Ltd.
On reasons that are fueling Vedanta share price rally, Manish Chowdhury, Head of Research at StoxBox said, “The recent traction in Vedanta shares can be attributed to both sector-specific and company-specific factors. The overall metal sector pack has done well on the back of strong quarterly business updates from metal companies. Additionally, an improved outlook for the manufacturing sector in China and the US following robust manufacturing PMI data raised hopes of higher metal consumption by the world’s two largest economies.
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