Vedanta shares faced significant selling pressure on Thursday, declining 4.4% to an intraday low of ₹595, as the broader metals sector experienced a sharp selloff driven by weakness in commodity prices.

Market Performance and Sector Impact

The metals sector witnessed broad-based weakness, with commodity price declines weighing heavily on investor sentiment. Key futures contracts across metals traded firmly in negative territory during the session.

The Nifty Metal index reflected this weakness, declining close to 3% with all constituents trading in negative territory. Major metal stocks including Hindalco, Hindustan Zinc, JSW Steel, NMDC, NALCO, Tata Steel, and Jindal Steel were among the notable laggards.

Technical Analysis and Price Outlook

Kunal Parar, Vice President and Technical Research Analyst at Choice Equity Broking, attributed the decline to profit booking after the stock hit record highs near ₹630. From a trading perspective, Parar maintains a cautious near-term view, expecting some cooling off to continue.

The analyst identified ₹580 as an immediate support zone for Vedanta, suggesting this level could offer a buying opportunity if the stock corrects further.

Demerger Plan Receives Approval

In a separate development, Vedanta received approval from the Mumbai bench of the NCLT for its proposed demerger plan. The restructuring will split the company into five separate listed entities, each with distinct strategic focus and dedicated capital structure.

Shareholders of Vedanta Limited will receive one share each in the four newly demerged entities for every share held in the parent company. The transition aims to create focused businesses aligned with long-term global and domestic demand trends.

Market Factors Behind the Selloff

The pressure in the metals space appears to stem from profit booking after recent highs, coupled with a sharp correction in commodity prices. This combination has weighed on metal producers across the board, creating broad-based weakness in the sector.

The selloff reflects the sensitivity of metal stocks to commodity price movements, with investors taking profits amid uncertainty in global commodity markets.

Vedanta has achieved a landmark milestone with the Mumbai Bench of the National Company Law Tribunal (NCLT) approving the company's demerger into five independent, pure-play companies. This transformational restructuring marks a key step in Vedanta's evolution into focused, sector-leading entities, each with clear strategic mandates, dedicated leadership teams, and specialized capital structures.

NCLT Demerger Approval Details

The NCLT approval enables Vedanta to enter the execution phase of its comprehensive demerger strategy. Post-demerger, shareholders will receive significant value through the creation of five separate listed companies:

For every share held in Vedanta Limited, shareholders will additionally receive one share each of the four newly demerged entities. The approval for demerger of the merchant power business is currently pending.

Commodity Market Performance in 2025

The year 2025 witnessed exceptional performance across key commodities, driven by heightened volatility, geopolitical focus on supply chain security, and the early stages of a global commodity supercycle fueled by energy transition demand.

Precious metals, particularly gold and silver, led sector performance with a combined year-to-date gain of 104%. Industrial metals demonstrated strong growth through structural demand increases, manufacturer stockpiling, and institutional inflows into commodity-denominated funds.

Strategic Business Developments

Vedanta Chairman Anil Agarwal received the Pravasi Rajasthani Samman award from Rajasthan Chief Minister Bhajan Lal Sharma and announced investments of ₹1 lakh crore in the state. This significant investment commitment underscores the company's expansion strategy in key mineral-rich regions.

The company strengthened its critical minerals portfolio by securing successful bids for two important blocks:

• Genjana Block: Nickel, Chromium, and Platinum Group Elements (PGE)
• Depo Block: Graphite Vanadium

These acquisitions align with the global focus on securing critical minerals including cobalt, copper, lithium, potash, nickel, and tungsten, which experienced significant price and supply chain volatility in 2025.

Operational Excellence and Recognition

Vedanta Aluminium achieved the #2 global rank in the S&P Global Corporate Sustainability Assessment 2025 for the third consecutive year, demonstrating consistent commitment to sustainable operations. The aluminium division also hosted representatives from leading global financial institutions at its Jharsuguda, Odisha operations, home to the world's largest aluminium plant.

Hindustan Zinc participated in the 44th India International Trade Fair (IITF) 2025 with an immersive showcase at the Mining Pavilion, while Cairn Oil & Gas represented India at the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC).

Market Performance and Outlook

Vedanta shares demonstrated strong performance, hitting a 52-week high of ₹607.65 and closing at ₹601.00 on the BSE, representing a 35.29% gain for the year. The stock maintained momentum over 13 consecutive trading sessions, jumping 17.44% during this period. Group company Hindustan Zinc also reached its 52-week high of ₹646.00, with shares gaining 43.50% year-to-date.

The commodity supercycle thesis gained momentum through structural shifts, rapid digitalization, and global infrastructure expansion, positioning copper, aluminium, and other base metals to lead future rallies. According to the International Energy Agency, global demand for electric vehicle battery minerals is projected to grow threefold by 2030, supporting long-term commodity demand fundamentals.