There was a strong rise in the shares of four newly listed companies of Vedanta Group on Wednesday. Shares of Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel and Vedanta Aluminum jumped up to 20% after exiting the trade-to-trade (T2T) segment. This boom has once again drawn the attention of investors towards Vedanta group companies.
What was the impact of coming out of T2T?
In T2T i.e. trade-to-trade segment, it is necessary to take delivery of every purchase and sale of shares. Intraday trading is not allowed in this segment, due to which trading activities in shares remain limited. Now after these four companies came out of T2T, investors have got the facility of trading and intraday business in normal manner. Due to this, liquidity in shares increased and buying pressure also increased.
Great rise seen in all four shares
As soon as the market opened, heavy buying was seen in the shares of Vedanta Oil and Gas, Vedanta Power, Vedanta Iron and Steel and Vedanta Aluminium. Many of these shares reached their upper circuit of 20%. Market experts believe that after coming out of T2T, trading volume in these shares is expected to increase and investor participation will increase, the effect of which is also visible on the prices.
Investor interest increased after demerger
Under the proposed demerger of the business of Vedanta Limited, different businesses are being developed as independent companies. The objective of this strategy is to allow each business to grow according to its potential and to give investors the option to invest in different sectors. For this reason, investors are keeping an eye on these companies.
What should investors see next?
Experts say that after coming out of T2T, volatility in shares may increase, because now intraday trading is also possible. However, instead of investing in any stock just by looking at its growth, it is important to assess the company’s business, financial condition and future prospects. Investors should also keep in mind their risk appetite and investment strategy before investing in such shares.
Leave a Reply