Vedanta Shares Face Selling Pressure Despite Strong Q4 Performance

Shares of Vedanta Limited experienced significant selling pressure on Friday, closing at ₹402.50—an 8.50% drop from Thursday’s close of ₹439.50 on the NSE. The decline comes in the wake of a broader downturn in the Indian stock market triggered by the unexpected tariffs announced by former U.S. President Donald Trump.

Promising Production Figures

Despite the recent volatility, Vedanta reported impressive production figures for the fourth quarter of FY25. The company achieved record highs in aluminium and zinc output while also seeing growth in iron ore, steel, oil and gas, and power sales.

• Aluminium Production: Reached 2,421 kt, marking a 2% increase year-on-year.
• Zinc Production: Mined metal production hit 1,095 kt, with refined output at 1,052 kt, both showing a 2% rise compared to the previous year.
• Iron Ore Sales: Showed a remarkable 22% year-on-year increase and a 36% jump quarter-on-quarter.

Market Sentiment and Expert Insights

Analysts are viewing Vedanta’s fundamentals positively, yet concerns linger due to Trump’s tariffs, which are anticipated to negatively impact metal stocks in the near term. According to experts, investors currently holding Vedanta shares should maintain their position with a strict stop-loss set at ₹350. New investors are advised to hold off until the market reacts to the tariff situation.

Astha Jain, a Senior Research Analyst at Hem Securities, commented on Vedanta’s quarterly performance, stating, “The record aluminium production combined with a significant boost in zinc outputs showcases the company’s robust operational capabilities." She also highlighted that Vedanta received approval last month for a strategic demerger into five independent, sector-specific entities.

Technical Analysis and Price Outlook

Market analysts are closely watching Vedanta’s price movements. Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, noted that the stock has dipped below its critical 200-period moving average at ₹454. He emphasized the importance of the ₹390 support level, stating, “A decisive breach below this threshold could lead to further downward pressure and intensified profit booking.”

• Key Levels to Watch:
  • Support: ₹390
  • Resistance: ₹440
  • Important Moving Averages: 200-period MA at ₹454 and 50-EMA at ₹444

He advises against initiating new long positions at current levels, suggesting that existing shareholders should hold their investments with a stop-loss at ₹350. If the stock falls below ₹385, it may test the ₹360 mark, further emphasizing caution for potential investors.

Conclusion

In summary, while Vedanta’s production numbers reflect strong operational performance, external factors such as tariff volatility are weighing heavily on its share price. Investors should remain vigilant, keeping an eye on market developments and technical indicators before making further investment decisions.