Vedanta share price tanked 2% to Rs 274.90 today after Foxconn pulled out of a $19.5 billion semiconductor joint venture with the billionaire Anil Agarwal-led company. Foxconn said it is “working to remove the Foxconn name from what now is a fully-owned entity of Vedanta. Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders,” Hon Hai Technology Group (Foxconn) said.
Despite a positive sentiment in the domestic market, Vedanta shares have traded flat in the last few months. While the stock has risen over 21% in the last one year, it has fallen 12.5% in the past six months. At the current price of Rs 277.50 per share, the company’s market capitalization stands at Rs 1.03 lakh crore.
Minister of State for Electronics and IT Rajeev Chandrasekhar said that Taiwanese electronics manufacturer Foxconn’s decision to pull out of the Vedanta joint venture has no impact on India’s semiconductor fabrication plant goal. “This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India’s Semiconductor Fab goals.” Chandrasekhar tweeted. “It’s not for govt to get into why or how two private companies choose to partner or choose not to, but in simple terms it means both companies can & will now pursue their strategies in India independently, and with appropriate technology partners in Semicon n Electronics,” Chandrasekhar tweeted.
Vedanta Stock Technical Outlook
“Vedanta Limited has been trading in a consolidation phase since March 2023 with hurdles seen at Rs 295 and support at Rs 260 levels. On daily charts, the stock is trading below 200ema on the daily charts which ensured the stock witnessed pressure on every rise seen in the last few weeks. While it trades comfortably above 200 ema on the weekly charts, the stock is expected to trade in the Rs 260-295 range in the coming days and unless it gives a breakout or breakdown of thing range, one should avoid trading in the short term,” said Gaurav Bissa, VP, InCred Equities.