Market values of mining conglomerate Vedanta group firms have come off their cliffs sharply in the Indian as well as the US and UK markets amid falling commodity prices — which incidentally have pushed valuations higher for the overall Indian markets.
This has been the case for the listed companies of the group in India, the UK and the US, even as the Indian markets have been on a record-breaking spree during the recent months helped by falling prices of commodities including crude oil.
The Vedanta group’s main holding company Vedanta Resources Plc is listed in London, while its Sesa Sterlite is listed in India as well as in the US.
In yesterday’s trade, Sesa Sterlite fell by about 7 per cent on NYSE, while that of Vedanta Resources plunged by over 15 per cent on the London Stock Exchange. On the BSE also, Sesa Sterlite shares fell by over 7 per cent yesterday, but were up by more than 1 per cent in today’s trade.
An analysis of the market valuations of these companies shows that Vedanta Resources Plc now commands a market capitalisation of just about one billion British pounds, as its share price on London Stock Exchange has fallen to near 400 British pound from close to 1,200 pound in June 2014.
Similarly, the share price of Sesa Sterlite on NYSE has fallen to near USD 12, from over USD 20 in June last year. The company commands a market cap of over USD 3 billion on NYSE.
Back in India, the share price of Sesa Sterlite has fallen to Rs 200 apiece, from close to Rs 300 in June last year. The company’s market cap has also accordingly fallen to near Rs 57,000 crore.
During the same period, the overall market capitalisation of all Indian companies has grown by over Rs 10 lakh crore to cross Rs 100 lakh crore milestone.