Following the Indian stock market crash and rising input costs due to soaring crude oil prices in international markets, Vedanta Aluminium Metal's share price witnessed selling pressure during the Opening Bell today. The Veanta Group stock opened with a downside gap at ₹431.25 apiece on the NSE and touched an intraday low of ₹419.50, a new 52-week low for the Anil Agarwal-owned stock.
According to stock market experts, the Anil Agarwal-owned stock is nosediving today for two major reasons: weak trends on Dalal Street and soaring crude oil prices, which are putting pressure on metal companies' margins. They said that rising base metal prices in international markets are also a reason for the dip in Vedanta Aluminium and Metal's share price.
Highlighting the reasons that are dragging Vedanta Aluminium and Metal shares, Anuj Gupta, a SEBI-registered market expert, said, “The major reason for the fall in Anil Agarwal-owned stock is rising crude oil prices. A 10% rise in crude oil prices leads to a 3.50% rise in the mining costs of metals, which ultimately puts pressure on the margins of metal companies.”
The SEBI-registered expert said that weak global market cues and selling pressure in the Indian stock market are also contributing to the decline in the Vedanta Aluminium and Metal share price.
Mahesh M Ojha, VP — Research and Business Development, believes the downtrend may be limited as base metal prices witnessed some profit-booking in the international market last night. However, he maintained that Vedanta Aluminium and Metal shares are looking in the bearish zone on the technical chart.