Vedanta down, Hind Copper up

One man’s loss is the other’s gain. Today’s big news was obviously the permanent shut down order by the Tamil Nadu state Govt for Vedanta’s copper plant. The news pushed down the stock price of Vedanta by 6% to Rs.239.05.

The shut down of Vedanta’s copper plant, which takes care of 40% of India’s copper need means, it is opportunity time for Hindustan Copper. The stock is among the top gainers on the BSE, going up 2% to Rs.76.95. The spike up in Hindalco was more muted – it went up 1% to Rs.244.85.

The permanent shut down of Vedanta’s plant will have wide spread ramifications for India, especially the automobile and electrical sectors. And this could mean that we might have to turn to imports to need the demand-supply gap.

The beneficiaries will be Hind Copper which has the capacity to produce 99,500 tonnes of copper per year and Hindalco which makes 5 lakh tonnes of copper. There is also Sterlite Copper whose production capacity is 4 lakh tonne of which 41% is exported.