Vedanta stock trips on pricing, supply worries, loses most gains since July

Correction in aluminium prices, concerns on increase in future zinc supplies affected investor sentiments, but analysts still positive

After continued gains in the recent past, the Vedanta stock fell by almost 11 per cent on Monday. This has erased most of the gains since mid-July. 

Vedanta, a natural resource major with interests in aluminium, zinc, crude oil, iron ore, etc, gets affected by changes in global base metal and oil prices. Thus, correction in aluminium prices on the London Metal Exchange (LME) and talks of a possible oversupply of zinc in the coming years affecting investor sentiment are no surprises. 

The two segments had contributed about two-third to the company’s segment profit in the June quarter (Q1FY19). Yet,