Vedanta gains on bargain hunting after recent steep losses

Vedanta rose 4.61% to Rs 83.95 at 13:45 IST on BSE, with the stock recovering on bargain hunting after a recent steep slide.

Meanwhile, the BSE Sensex was up 260.22 points, or 1.01%, to 25,964.56.

On BSE, so far 13.37 lakh shares were traded in the counter, compared with an average volume of 6.29 lakh shares in the past one quarter.

The stock hit a high of Rs 85.70 in intraday trade so far. The stock hit a low of Rs 76.70 so far during the trading session, which is a 52-week low for the counter. The stock had hit a 52-week high of Rs 296.35 on 22 August 2014.

The stock had underperformed the market over the past one month till 24 August 2015, sliding 39.48% compared with 8.43% fall in the Sensex. The stock had also underperformed the market in past one quarter, declining 61.32% as against Sensex's 7.93% decline.

The large-cap company has an equity capital of Rs 296.47 crore. Face value per share is Re 1.

Concerns of a slowdown in growth in China's economy triggered a steep decline in Vedanta's stock price recently. The stock tumbled 25.13% in the preceding six trading sessions to settle at Rs 80.25 yesterday, 24 August 2015, from a recent high of Rs 107.20 on 14 August 2015. Vedanta is one of the major manufacturers of metals.

China is the world's largest consumer of steel, copper and aluminum.

Vedanta said this month that its subsidiary Bharat Aluminium Company (BALCO) has decided to close down its Rolled Product business due to a steep fall in aluminium prices globally, negative margins and huge imports. The Rolled Product Business produced 46,000 tonnes of the product in the year ended 31 March 2015, Vedanta said.

On consolidated basis, Vedanta's net profit rose 130.6% to Rs 865.94 crore on 0.6% decline in net sales to Rs 16951.88 crore in Q1 June 2015 over Q1 June 2014.

Vedanta (formerly Sesa Sterlite) is a diversified natural resources company. The company produces zinc, lead, silver, copper, iron ore and aluminium.

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