Vedanta gets beaten down

Vedanta is the top loser on the BSE currently, going down 20% to Rs.158.35. It remains the top loser on the BSE since opening bell.

The market is very perturbed with its foreign unit, Cairn India Holdings paying $200 million or Rs.1431 crore to buy a stake in Anglo American PLc from Volcan Investments.

It also posted a poor show for Q3FY19, with a 26% (YoY) drop in consolidated net profit at Rs.1574 crore  hit by lower commodity prices and disruption in its copper smelter operations at Tuticorin.

Following these two developments, many brokerages – ICICI Securities, CLSA, Goldman Sachs, IDFC Securities have downgraded the stock, cutting its target price.