Vedanta Aluminium Metal shares dip over 3% | Here's why Anil Agarwal-owned stock is nosediving

Following the Indian stock market crash and rising input costs due to soaring crude oil prices in international markets, Vedanta Aluminium Metal's share price witnessed selling pressure during the Opening Bell today. The Veanta Group stock opened with a downside gap at ₹431.25 apiece on the NSE and touched an intraday low of ₹419.50, a new 52-week low for the Anil Agarwal-owned stock.

According to stock market experts, the Anil Agarwal-owned stock is nosediving today for two major reasons: weak trends on Dalal Street and soaring crude oil prices, which are putting pressure on metal companies' margins. They said that rising base metal prices in international markets are also a reason for the dip in Vedanta Aluminium and Metal's share price.

Why is Anil Agarwal-owned stock nosediving?

Highlighting the reasons that are dragging Vedanta Aluminium and Metal shares, Anuj Gupta, a SEBI-registered market expert, said, “The major reason for the fall in Anil Agarwal-owned stock is rising crude oil prices. A 10% rise in crude oil prices leads to a 3.50% rise in the mining costs of metals, which ultimately puts pressure on the margins of metal companies.”

The SEBI-registered expert said that weak global market cues and selling pressure in the Indian stock market are also contributing to the decline in the Vedanta Aluminium and Metal share price.

Mahesh M Ojha, VP — Research and Business Development, believes the downtrend may be limited as base metal prices witnessed some profit-booking in the international market last night. However, he maintained that Vedanta Aluminium and Metal shares are looking in the bearish zone on the technical chart.

“The Vedanta Group stock has strong support at ₹414. On breaking below this support, the stock may decline towards the ₹380 level. However, the stock may not break below ₹414 with ease. On the upper side, the stock may soon touch ₹460 on breaking above ₹436 decisively,” Mahesh M Ojha said.

Soaring crude oil price in focus

Crude oil prices have been skyrocketing due to the geopolitical tension in the Middle East. WTI crude oil price is trading in the $103–104-per-barrel range after rising around 7.5% in the previous session, while Brent has moved toward the $108 mark amid escalating tensions involving Houthi forces and Saudi Arabia. The sharp increase in crude prices is likely to heighten concerns over India's import bill, inflation and corporate margins, keeping risk appetite subdued.

Geopolitical tensions in the Middle East remain elevated, with reports of Tehran-backed rebels capturing a key Red Sea port, raising concerns over potential disruptions to shipping and regional trade routes. Meanwhile, continued exchanges of strikes involving the U.S. and Iran near the Strait of Hormuz are adding to uncertainty over global energy supplies and keeping the geopolitical risk premium in crude markets elevated.

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