Shares of Vedanta Ltd. continued their impressive upward trajectory on Thursday, May 14, extending their winning streak to a fourth consecutive session. The stock achieved a 52-week high of Rs 336 on the BSE during early trade, marking a 4% surge. This follows a nearly 6% gain in the previous session, closing at Rs 323.10 apiece, pushing the total rally over the past four trading days past 13%.
What's Driving the Vedanta Shares Rally?
The primary catalyst behind the robust performance of Vedanta shares, and the broader metal sector, is the government's recent policy change regarding precious metals. Authorities have increased import duties on gold and silver from 6% to 15%. This move aims to curtail overseas purchases of these metals and alleviate pressure on the nation's foreign exchange reserves.
The hike in import duties is expected to benefit domestic producers and refiners, making their products more competitive against imported alternatives. As a diversified natural resources company with significant operations in metals, Vedanta is well-positioned to capitalize on this regulatory shift.
Vedanta's Strong Production Performance
In addition to the favorable market conditions, Vedanta's latest financial disclosures highlight strong operational performance. According to its Q4 FY26 investor presentation:
- Silver Production: The company reported full-year saleable silver production of 627 metric tonnes (MT). Crucially, silver contributed a substantial 45% to Vedanta's overall profitability. For the March quarter alone, silver production saw an 11% sequential increase, reaching 176 MT.
- Hindustan Zinc: Vedanta's subsidiary, Hindustan Zinc, achieved its highest-ever quarterly mined metal production at 315 kilotonnes (kt) and refined metal production at 282 kt.
- Aluminium Business: The aluminium segment also recorded its highest-ever annual production, reaching 2,456 kilotonnes (KT), representing a 1% year-on-year growth.
Furthermore, Vedanta has successfully compressed its cost of production to five-year lows across both its aluminium and zinc segments, enhancing its profitability margins amidst rising demand and favorable pricing.
The combination of supportive government policies and strong operational metrics has fueled investor confidence, driving Vedanta shares to new highs and extending the positive momentum across the metal industry.