Vedanta shares hit 52-week high today: What's driving the surge?
What's the story
Shares of metal and mining giant Vedanta have surged by 2.47% to a 52-week high of ₹615.25 on the Bombay Stock Exchange (BSE) today. The rise comes as investor interest in metal stocks grows amid a broad-based sectoral strength. The company's recent success in winning the Depo Graphite-Vanadium Block has also contributed to this positive market reaction.
Subsidiary success
Hindustan Zinc's rally boosts Vedanta's performance
The rise in Vedanta's shares also coincides with a strong rally in its subsidiary, Hindustan Zinc Ltd. The latter's shares hit an all-time high of ₹655 during intraday trade on the BSE. Notably, Hindustan Zinc's stock has been on a steady upward trend for 19 consecutive sessions, amid a global surge in silver prices.
Market trends
Silver prices surge, impacting metal stocks
Globally, silver prices have crossed the $82-per-ounce mark for the first time. In India, silver futures have also hit ₹2.50 lakh per kilogram. The strong price action in silver is being closely monitored by market participants with exposure to base and precious metals. This trend has further fueled investor interest in metal stocks like Vedanta and Hindustan Zinc Ltd.
Strategic win
Vedanta's successful bid strengthens critical minerals portfolio
On December 26, Vedanta announced its successful bid for the Depo Graphite-Vanadium Block under Critical Mineral Auctions Tranche IV. The allocation was made by the Ministry of Mines, Government of India, after all statutory compliances were met. The company said this win would further strengthen its critical minerals portfolio, adding to the positive momentum in its shares.