Hindustan Zinc share price dips 6% after Vedanta’s stake sale move

Stock market today: Hindustan Zinc shares came under strong selling pressure during early morning deals on Friday. Hindustan Zinc share price today opened with a downside gap of ₹530 per share on the NSE and touched an intraday low of ₹527.10 apiece within a few minutes of the opening bell. However, Hindustan Zinc shares witnessed buying at lower levels, enabling the metal stock to pare its early morning losses. Hindustan Zinc share price is currently at around ₹539.50 per share, which is still nearly 6 percent below its previous close of ₹571.75 per share.

Trigger for selling in Hindustan Zinc shares

The market was expected to react to Hindustan Zinc shares, as its patent company Vedanta announced on 14 August 2024, after market hours, that it had decided to sell a 2.60 percent stake in Hindustan Zinc.

Vedanta informed Indian stock market exchanges about the decision saying, "We wish to inform you that the duly authorized Committee of Directors of Vedanta Limited ("Committee"), at its meeting held today on August 13, 2024, has approved the sale of upto 11,00,00,000 equity shares of Hindustan Zinc Limited ("HZL"), representing 2.60% of the issued and paid-up equity share capital of HZL, by way of an offer for sale through the stock exchange mechanism, by applicable laws and the circulars issued by the Securities and Exchange Board of India and the stock exchanges."

The meeting of the Committee commenced at 4:30 PM and concluded at 4:45 PM.

Vedanta share price jumps

However, Vedanta shares witnessed some buying interest on Friday. The company's shares opened with an upside gap at ₹426 apiece on the NSE and touched an intraday high of ₹430.25 apiece, recording a 2.50 percent rise against its previous close of ₹420.20 per share. Vedanta shares are still trading in the green zone.

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