Vedanta Shares Jump 3% to Record High as Copper, Aluminium Prices Rally, Can It Reach Rs 800?
Vedanta shares surged about 3 percent to hit a fresh 52-week high after global metals like copper and aluminium rallied sharply, lifting investor sentiment and sparking hopes that the stock could soon reach the Rs 800 level. Traders and analysts say the strong run in commodity prices, combined with structural improvements in Vedanta’s core businesses, supports the recent buying interest in the stock.
Strong Commodity Prices Boost Vedanta Shares
The major catalyst behind the recent jump in Vedanta shares is the sharp rebound in commodity prices, particularly in copper and aluminium markets. On the London Metal Exchange, copper prices have climbed close to their record highs of over $13,400 per tonne, reflecting tightening supply and solid demand from key sectors such as construction, electric vehicles, renewable energy, and infrastructure.
Similarly, aluminium prices have been trading at elevated levels near $3,100 per tonne, significantly above historical averages. Higher prices for these base metals mean more revenue and stronger margins for metal producers like Vedanta Ltd, which has large operations in aluminium, copper, zinc, and other industrial metals. This price strength is seen as a key factor supporting the upward movement in Vedanta shares.
Record High and Market Sentiment
On January 23, 2026, Vedanta’s stock climbed to around ₹699 on the Bombay Stock Exchange, marking its highest level in the past year. This rise came as the broader metal stock rally gained momentum, with the Nifty Metal index among the top performers in the Indian equity markets this year.
Market participants noted that as metal prices rally, investors often rotate into stocks of companies with heavy exposure to commodity cycles, which can include miners, metal producers, and diversified materials firms. Analysts also highlight continued buying interest from both domestic and institutional investors who see value in metal companies benefiting from global commodity up-cycles.
Brokerage Views and Price Targets
Brokerages have become more bullish on Vedanta, revising their target prices higher as metal prices strengthen and the company moves forward with strategic changes. Nuvama Institutional Equities, for instance, raised its target price for Vedanta to around Rs 806 per share, suggesting a potential upside of approximately 18 percent from current levels. This estimate reflects expectations of higher earnings before interest, tax, depreciation and amortisation (EBITDA) and the value unlocking anticipated from the company’s ongoing demerger process.
Vector Securities and Kotak Institutional Equities also have relatively optimistic targets near Rs 780, based on forecasts of sustained commodity prices and growth in Vedanta’s metals business. These valuations consider expected volume growth in aluminium and zinc, strong pricing trends, and improvements in cost efficiency.
The Role of Demerger and Corporate Strategy
Apart from commodity price drivers, Vedanta is undergoing a major structural change. The company has received regulatory approvals to split into five standalone listed entities, including Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel & Iron, and the parent Vedanta Ltd, housing Hindustan Zinc and related assets. )
This demerger is expected to unlock shareholder value by allowing each business to be valued independently. Analysts believe that focused entities can deliver more efficient capital allocation, better operational management, and clearer growth strategies, which can attract investors and support higher share valuations in the long term.
Strong commodity prices combined with this strategic shift add to the stock’s appeal, especially for investors looking for diversified exposure within the metals and mining sector.
Commodity Fundamentals Driving Momentum
Vedanta’s earnings and valuation are highly sensitive to commodity price cycles. Copper, for example, is entering a phase of tightening supply with limited new mine capacity coming online, even as demand from electrification, renewable energy build-outs, and EVs continues to rise globally. This supply-demand imbalance has helped to lift prices closer to multi-year highs.
Aluminium markets have also rebounded strongly, trading at some of the highest levels seen in recent years. Vedanta’s aluminium division contributes a significant portion of group EBITDA, making its performance critically linked to price trends in this metal. Higher aluminium prices contribute directly to revenue and profit expansion at Vedanta, providing a strong earnings cushion that supports valuations of Vedanta shares.
Valuation Metrics and Risks
Despite strong price momentum, there are risks investors should consider before betting on a move to Rs 800 or beyond. Commodity price cycles can be volatile, and shifts in global demand or supply dynamics can quickly reverse trends. For example, if global economic growth slows or inventory levels rebuild, base metal prices could soften.
Additionally, while the demerger creates potential for value unlocking, execution risks remain, including regulatory approvals, capital allocation strategies, and macroeconomic conditions that could affect individual business units differently.
Labour costs, energy prices, and production efficiencies also influence profitability. Even as metal prices rise, companies must manage costs and production volumes to fully benefit from favourable pricing.
Broader Stock Market Context
The rally in Vedanta shares coincides with a broader uptrend in metal stocks within the Indian share market, reflecting improved investor risk appetite for commodity-linked equities. Many investors view commodity stocks as hedge assets during inflationary periods or times of economic transition, especially when global infrastructure spending and industrial activity remain strong.
This trend has also drawn attention from traders focused on cyclicals and materials sectors, with increased stock research interest in companies that benefit from global metal price rallies.
Conclusion
There is plausible support for Vedanta shares achieving the Rs 800 mark, given strong commodity price trends, bullish brokerage targets, and strategic corporate changes like the demerger. Elevated copper and aluminium prices provide a solid earnings backdrop, while analysts’ revised targets and continued optimism in commodity markets add to investor confidence.
However, investors should remain mindful of the cyclical nature of commodity prices and macroeconomic conditions that can quickly shift market sentiment. For long-term investors, growth in metals demand, better cost structures, and improvements in business focus post-demerger could create a favourable environment for Vedanta’s valuation.
Frequently Asked Questions
Vedanta shares jumped about 3 percent to a new 52-week high on strong rallies in copper and aluminium prices, which lifted sentiment across metal stocks.
Brokerages like Nuvama Institutional Equities and Kotak have raised price targets toward ₹780–₹806, reflecting optimism on metals pricing and value unlocking from the company’s demerger plans.
Commodity price volatility, global economic slowdown, demerger execution challenges, and changes in production costs could all affect Vedanta’s share performance negatively.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
