Stocks of diversified natural resources major Vedanta plunged by around 18 per cent on the back of a decline in Q3 consolidated profit.
The company's scrip on the BSE fell 17.82 per cent or Rs 35.20 on Friday to Rs 162.30 from its previous close.
"Shares of Vedanta fell around 18 per cent on Friday on account of a 21 per cent on year decline in its third quarter consolidated profit due to lower commodity prices and shutdown of copper smelter at Tuticorin," said Deepak Jasani of HDFC Securities.
"But the bigger worry was the purchase in economic interest in Anglo American from parent that should raise capital allocation risks. This related-party transaction may hurt valuations as the counter-party risk is high because the highly leveraged parent derives its value from Vedanta."
--IANS
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