Troika of issues to have a bearing on Vedanta's near-term earnings

Soft base metal prices, cost pressures and lower volumes in some segments present key challenges

Shares of Vedanta, which have underperformed leading indices over the past one year due to pressure on base metal prices, were among the top Sensex gainers on Monday. Analysts attribute the gains to the bounce in the metals pack as a whole, led by expectations that a trade agreement between the US and China could improve demand and, in turn, realisations for metals.

While sentiments may have improved, the outlook for non-ferrous players such as Vedanta, Hindalco still remains challenging, looking at the suppressed base metal prices on the London Metal Exchange (LME). Per-tonne aluminium prices, at slightly over $1,700,