Vedanta group shares fall after S&P puts parent on credit watch negative

Vedanta and Cairn India stocks fell on Thursday after S&P placed parent Vedanta Resources on "credit watch negative".  S&P cited in part uncertainty behind the proposed merger between Vedanta and Cairn India. Vedanta made a $2.3-billion offer in June to buy out minority shareholders in cash-rich Cairn India.

At 1253 hours, Vedanta and Cairn India stocks were trading more than 1 per cent lower on BSE.

The Cairn India stock closed 1.10 per cent higher on BSE. The Vedanta stock closed 0.20 per cent lower.

The ratings agency has rated Vedanta Resources as 'BB-minus'