Vedanta shares hit 52-week low for second session post stake sale by promoter entity

Shares of Vedanta Ltd fell to a fresh 52-week low today, declining amid a rising market. The stock of the mining and metal major slipped 4.06% intraday to Rs 237.10 against the previous close of Rs 247.15 on BSE. The stock hit the 52-week low for the second consecutive session post stake sale by a promoter entity last week. On August 3, the stock fell 8.96% to Rs 247.80, close to the 52-week low of Rs 245.85 hit on August 4, 2022.  In the next session on  August 4, the stock hit a fresh 52 week low of Rs 245.55 on BSE.

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Later, Vedanta stock ended 3.74% lower at Rs 237.90 on BSE today. A total of 39.98 lakh shares of the firm changed hands amounting to a turnover of Rs 96.31 crore on BSE. Market cap of the firm fell to Rs 88,432 crore.

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 22.9, signaling the stock is trading in the oversold territory. The stock has a one-year beta of 1.2, indicating high volatility during the period. Vedanta stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

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Vedanta shares have lost 25% this year and fallen 6.06% in a year. The Vedanta stock has lost 12% or Rs 34.3 since stake sale on August 3 by a promoter entity. The stock ended at Rs 272.2 apiece on August 2, 2023 against today’s close of Rs 237.90 on BSE.

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On August 3, Twin Star Holdings, the majority shareholder among Vedanta’s promoters, offloaded 15.4 crore shares or 4.14% stake in the company. The transaction was done at a weighted average price of Rs 258, a 5% discount to the closing price on August 2. Promoters held majority stake in Vedanta at 68% at the end of June quarter and Twinstar Holdings owned 46.4% stake.

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Vedanta reported a 40% fall in net profit to Rs 3308 crore in the first quarter. Revenue fell 13% to Rs 33,242 crore in Q1 from Rs 38,251 crore during Q1FY23 The company declared an interim dividend of Rs 18.5 per share.

Meanwhile, domestic equity markets settled higher on Monday. Muted global cues and FIIs selling weighed on the market sentiments. Sensex gained 232.23 points to settle at 65,953.48, while NSE's Nifty50 surged 80.30 points to 19,597.30.

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