Vedanta Shares Bleed Over 8%: Block Deal, MSCI Exit Triggers Massive Selloff; Should You Buy The Dip?

Vedanta's stock has had a rough Tuesday so far as by 1:20 PM, vedanta shares were down 8.3% at Rs. 280.45. The mining & meta major today opened at Rs. 294.50 and fell to an intraday low of Rs.279 per share.

The main reason behind this drop is the massive promoter block deal that took place this morning with over 116 million shares exchanging hands on the NSE and BSE. The selloff wiped out a significant chunk of market value, with Vedanta's market capitalisation standing at approximately Rs. 1.11 lakh crore.

Vedanta Block Deal Details

The large block deal was executed by Twin Star Holdings, a promoter entity of Vedanta. As per reports, Twin Star offloaded up to 6.5 crore shares via block trades at a floor price of Rs. 291 per share a discount of nearly 4.9% to Monday's closing price in a deal worth an estimated Rs. 2,149 crore or $200 million.

As of March 31, 2026, Twin Star Holdings held a 40.02% stake in Vedanta, while the broader promoter group held 56.38%. The sale was for approximately 1.8% of total company equity.

Vedanta's Removal From MSCI

Apart from the block deal pressure, MSCI officially removed Vedanta from its Global Standard Indexes on June 22, 2026. Vedanta's removal was due to its recent demerger that has forced passive funds and institutional investors to exit their positions.

Vedanta Share Price Performance lately

Over the past one month, Vedanta shares have underperformed the broader market by falling 13%, even as the Nifty 50 rallied 4.6% in the same period. As per Trednlyne's report, the stock has been trading below its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages.

Vedanta Demerger Deatils

Vedanta divided itself into five independent entities covering aluminium, oil & gas, power, iron & steel, and the core Vedanta Ltd. Investors who held Vedanta shares before the record date of May 1, 2026 were entitled to shares in all demerged entities which includes Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel.

Should You Buy Vedanta Shares? Citi Gives a BUY call

Citi initiated coverage on Vedanta with a Buy rating and a target price of Rs. 560 calling it their top metals pick in India right now.
The bank in its report said that the aluminium outlook looks positive and sees strong growth potential, and points to the company's increasing focus on cutting costs. They expect Vedanta to reach a net cash position by FY28, meaning the debt burden that has long hung over this stock should largely be gone in two years.

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