Vedanta Power Shares Rise Over 5% Today As Stock Set To Enter Nifty 500 Index From September 30
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Vedanta Power share price rose 5.7% to ₹32.84 on September 23 as the stock remained in focus ahead of its Nifty 500 inclusion. The index change takes effect September 30, with passive fund flows and power business performance in focus.
Vedanta Power shares rose 5.7% on Wednesday after NSE Indices announced that the stock will be added to the Nifty 500 from September 30. The company will also be included in the Nifty Smallcap 250, Nifty Midsmallcap 400 and Nifty Smallcap 500.
At 1:18 pm IST on September 23, Vedanta Power was trading at ₹32.84 on the NSE, up ₹1.77 from the previous close. The stock opened at ₹31.29 and touched an intraday high of ₹33.44.
Why Is Vedanta Power Stock Rising?
The index inclusion is the immediate trigger for the stock's move. The addition can bring demand from passive funds and exchange-traded funds that track the affected indices, although the actual impact will depend on the stock's weight in each benchmark.
Nuvama Alternative and Quantitative Research has estimated that the four newly demerged Vedanta companies could together attract passive inflows of up to $159 million following the September reshuffle. Vedanta Aluminium Metal is expected to account for about $149 million of the estimated flows, while Vedanta Oil & Gas could see around $4 million and Vedanta Power and Vedanta Iron & Steel around $3 million each.
Vedanta Power's inclusion comes after the company became a separately listed entity following Vedanta's demerger. The restructuring created separate listed businesses for aluminium, power, oil and gas, and iron and steel.
Vedanta Power Business Numbers
The index-related development comes as the company expands its power operations. Vedanta Power recorded power sales of 5,225 million units in the June quarter, up 38% from a year earlier.
Standalone sales increased to ₹1,825 crore from ₹1,720 crore in the year-ago quarter. However, the company reported a standalone net loss of ₹449 crore, compared with a profit of ₹75 crore a year earlier.
Vedanta Power has outlined plans to increase its generation capacity to 20 GW by FY33. Its portfolio includes power assets at Talwandi Sabo in Punjab, Meenakshi Energy in Andhra Pradesh, Jharsuguda in Odisha and Sakti in Chhattisgarh.
Around 74% of power sales in the June quarter were secured through long-term or medium-term power purchase agreements, according to the company's quarterly update.
Vedanta Power Share Price Today
Vedanta Power shares traded between ₹31.27 and ₹33.44 during Wednesday's session. The stock's 52-week high is ₹52.49, recorded on July 3, while its 52-week low is ₹30.44, recorded on September 18.
The September 30 index change will put the stock on the radar of funds tracking the Nifty 500 and other affected benchmarks. Beyond the index-related activity, power generation, electricity sales, earnings and capacity additions remain key factors for the company.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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