Stock Market Today: Vedanta Ltd share price gained more than 5% in intraday trades:
On Thursday, September 26, Vedanta Ltd’s share price rose to an intraday high of ₹504.75, up more than 5% from the previous close. Vedanta’s share price is close to its 52-week high of ₹506.85. Vedanta’s share price has risen by more than 10% in the last three trading days.
Here are the key reasons that drove Vedanta share price over 10% in the last three trading sessions and close to its one-year high:
Dividend expectations- The Board of Directors of mining giant Vedanta Ltd are scheduled to meet on October 8 to consider the fourth interim dividend for the financial year 2024-25.
Vedanta Ltd has already declared three interim dividends of ₹20, ₹4 and ₹11 per equity share so far in the ongoing financial year. A strong dividend yield makes investments in Vedanta attractive for investors.
China demand recovery hopes- The hope of recovery in metals demand from China has risen significantly with multiple steps being taken by the world’s largest consumer of commodities
In an effort to boost economic development, China’s central bank would reduce banks’ reserve requirement ratio (RRR) by 50 basis points, releasing approximately 1 trillion yuan ($142.21 billion) in new lending.
Furthermore, the central bank is willing to reduce the RRR by another 0.25-0.5 percentage point later this year if necessary. In addition, to help the suffering real estate market, they will slash interest rates on existing mortgages and drop the minimum down payment for properties to 15%.