Vedanta Shares Soar to Record Highs: What's Fueling the Surge?

• Vedanta Ltd.'s share price hit a record high on Wednesday, January 14, marking its biggest single-day gain since May last year.
• The surge is primarily driven by a sharp increase in global commodity prices for silver, zinc, aluminium, and copper, all key to Vedanta's business.
• A weaker dollar and global demand-supply mismatch have contributed to the commodity rally, alongside valuation support and prospects of value unlocking from an ongoing demerger.
• Nuvama, a brokerage firm, raised Vedanta's share price target to ₹806, citing higher commodity prices, cost reduction in aluminium, and volume growth in international zinc and power.
• The demerger process will create five separately listed entities, with the Aluminium business and Hindustan Zinc contributing significantly to Nuvama's valuation.

Why It Matters: Vedanta's stock reached record levels, propelled by rising commodity prices, strong valuations, and a strategic demerger.