Vedanta Power Surges to New Peak. (Image Internet)
Mumbai: Shares of Vedanta Power continued their upward march on Thursday, extending gains for a second straight session and touching a new 52-week high. The stock outperformed its sector despite volatility in the broader market, where investors remained cautious following signals from the US Federal Reserve on future interest rate movements.
Vedanta Power opened the trading session at Rs 42.70, higher than its previous close of Rs 42.15 on the BSE. Buying interest strengthened during the day, pushing the stock to an intraday high of Rs 43.70, marking a gain of nearly 3.7 percent from the previous closing level.
The latest move has helped the stock gain approximately 6.85 percent over the past two trading sessions, reflecting growing investor confidence in the newly listed company.
Market participants believe the rally is being supported by strong investor appetite for power and infrastructure-related businesses. Rising electricity demand across India and expectations of long-term growth in the sector have increased interest in companies linked to energy generation and distribution.
Analysts note that the demerger has allowed investors to assess Vedanta Power as a standalone business, creating greater visibility around its operations and future growth prospects.
Vedanta Power, one of the four companies carved out from Vedanta Ltd, had a mixed debut on the stock exchanges. While it briefly surged during intraday trading on listing day, it eventually closed below its opening price.
However, the stock has since recovered and moved higher as investors evaluate its independent business potential.
The listing forms part of Vedanta Group's broader restructuring plan aimed at creating focused sector-specific businesses. Apart from Vedanta Power, the group has also demerged its aluminium, oil and gas, and iron and steel businesses.
The demerger, approved by the National Company Law Tribunal last year, is intended to unlock shareholder value and enable each business to pursue growth opportunities independently while Vedanta Ltd remains the group's flagship listed company.
