Shares of Vedanta Ltd climbed over 6% in intraday trade on Wednesday, hitting a record high of Rs 679.45 and outperforming the broader market amid strong buying interest. The stock remained close to its recent peak as volumes picked up sharply.
The rally was supported by a mix of positive brokerage commentary, renewed investor focus on the company’s proposed demerger, and sustained strength across the metals and mining sector.
The immediate catalyst for the surge was a bullish call from Nuvama Institutional Equities, which raised its target price for the stock to Rs 806 from Rs 686 earlier. The brokerage highlighted attractive valuations, improved earnings visibility, and strong cash flow generation as key factors underpinning its optimism.
The upgrade triggered fresh inflows, particularly in early trade, lifting trading volumes above recent averages. Analysts also pointed to Vedanta’s diversified business portfolio as a key support for sentiment. The company has significant exposure to zinc, aluminium, oil and gas, and iron ore, enabling it to benefit from strength across multiple commodity segments and providing a degree of earnings stability amid firm global commodity prices.
Investor interest has also been buoyed by expectations around Vedanta’s proposed demerger, under which the group plans to separate its various businesses into independently listed entities. Market participants view the restructuring as a potential value-unlocking move, as it could allow each business to be valued on its own merits while improving transparency and operational focus.
The demerger has remained a recurring trigger for the stock, with optimism resurfacing whenever progress or clarity is anticipated on timelines and regulatory approvals.
Adding to the positive momentum, the broader metal and mining sector traded firm, supported by resilient global prices for base metals such as aluminium and zinc, along with steady demand trends. Metal stocks have remained in focus in recent sessions, and Vedanta, given its scale and cost efficiencies, has emerged as a key beneficiary of the sector-wide strength.
Beyond the day’s rally, investors continue to track Vedanta’s cash flow generation, dividend payouts, and debt management initiatives, all of which are expected to influence the stock’s medium-term outlook.
While analysts remain constructive on the company, they caution that commodity-linked stocks can be volatile, with movements driven by global macroeconomic developments, currency fluctuations, and shifts in demand.
Going ahead, market participants will closely watch updates on the demerger process, upcoming quarterly earnings, and global commodity price trends, which are likely to remain the primary drivers of Vedanta’s share price.
