Vedanta shares zoom nearly 7% to touch fresh record high; more steam left?

Shares of Vedanta Ltd continued to surge in Wednesday's trade, rising 6.64 per cent to touch a fresh all-time high of Rs 679.40. The strong rally extended the stock's recent momentum, driven by positive sentiment following a key regulatory development related to the company's restructuring plans.

The National Company Law Tribunal (NCLT), Mumbai Bench, approved the Scheme of Arrangement involving Vedanta Ltd and its subsidiary, Talwandi Sabo Power Ltd (TSPL). In its order dated January 9, 2026, the tribunal cleared the proposed scheme, which also covers Vedanta Aluminium Metal Ltd, Malco Energy Ltd, and Vedanta Iron and Steel Ltd.

As per the rationale submitted before the tribunal, Vedanta stated that the power business operates under a risk profile and competitive environment distinct from its other natural resource verticals. The company noted that this differentiation necessitates a separate structure, which could allow sharper operational focus and more targeted access to capital markets for the power segment.

A few market participants have largely responded positively to these developments. Ravi Singh, Chief Research Officer at Mastertrust, said Vedanta shares have been performing well as investors react to steady business performance and ongoing corporate updates.

He highlighted that, on the fundamentals side, the company continues to generate healthy cash flows from its core businesses and has maintained regular dividend payouts, factors that add to its appeal for long-term investors.

Singh also pointed out that optimism around the proposed demerger has supported sentiment, as it is expected to improve business focus. At the same time, he flagged high debt levels and volatility in metal prices as key aspects to monitor.

From a technical perspective, Singh noted that the stock remains in a strong uptrend, marked by higher highs and higher lows. He said buying interest is visible on declines, though short-term consolidation cannot be ruled out after the recent sharp rise. According to him, buying on dips appears more prudent than chasing prices at elevated levels.

Drumil Vithlani, Technical Analyst at Bonanza, said Vedanta is trading firmly above all key moving averages on daily charts, indicating sustained bullish momentum. He noted that the stock is approaching the Rs 690–700 resistance zone, where some short-term profit booking may emerge. A decisive breakout above this zone, supported by volumes, could pave the way for higher levels. On the downside, he identified Rs 630–620 as immediate support, with stronger medium-term support placed lower. He added that the relative strength index (RSI) is in the overbought zone, suggesting consolidation rather than a reversal.