Vedanta Power, Iron & Steel & Oil & Gas Shares Fall Up to 8%: What's Behind the Sudden Selloff?
Profit-booking hit the newly demerged Vedanta stocks after a 14-session rally, but the fundamentals haven't changed.
On 3 July 2026, the newly listed Vedanta stocks saw sharp profit-booking after a strong post-listing rally. Vedanta Power fell about 8% to an intraday low of ₹44.77, Vedanta Oil & Gas dropped nearly 7%, and Vedanta Iron & Steel slipped 5% before recovering to trade flat. Vedanta Aluminium Metal bucked the trend, gaining about 2%. The fall followed 14 straight sessions of gains and was driven by profit-taking, not weak fundamentals.
For nearly two weeks, the new Vedanta stocks were on a dream run. Many of the split-off stocks hit back-to-back upper circuits. Buyers stayed keen. Some stocks even rose more than 100% in days. Then, on Friday, that run stopped.
Shares of Vedanta Power, Vedanta Oil & Gas, Vedanta Iron & Steel and Vedanta Aluminium Metal saw sharp profit-booking. Some fell as much as 8% in the session. So has the rally lost steam? Or is this just a pause after a big run? Here is a simple breakdown.
A strong rally was bound to face a reality check
The four Vedanta businesses started trading on their own on 15 June 2026. This gave investors a direct stake in each business, instead of holding them all inside one listed company. Since then, the rally had been strong.
The biggest winner was Vedanta Iron & Steel. The stock had surged 113% since listing before Friday's fall. That more than doubled investor money in about two weeks. It had also gained 10% in each of the two prior sessions. Vedanta Power was another star. Before the fall, it had jumped 20.75% in just two sessions. After such fast moves, many investors chose to lock in gains. That set off broad profit-booking across the new group.
Which Vedanta stocks fell the most?
Friday's selloff was broad, though the size of the fall varied by stock. Vedanta Aluminium Metal was the clear exception and closed higher.
| Stock | Move on Friday | Price level |
|---|---|---|
| Vedanta Power | Down ~8% | Low of ₹44.77 |
| Vedanta Oil & Gas | Down ~7% | Near ₹41.34 |
| Vedanta Iron & Steel | Down ~5%, then flat | Near ₹40.51 |
| Vedanta Aluminium Metal | Up ~2% | Best of the four |
The fall came after 14 straight sessions of gains across the new Vedanta stocks. That long winning run made profit-booking the main reason behind the sudden dip.
Which Vedanta demerged stock rose on the day the others fell sharply?
Why profit-booking is not always a bad sign
Sharp rallies often pull in fast buyers who chase the trend. But once a stock rises quickly, early investors may choose to book profits. This is common after double-digit gains in days. It can push prices lower for a while, even when the business outlook stays the same.
That seems to be the case with the Vedanta stocks. The dip was not caused by any big bad news. It simply followed a very strong rally that pushed investors to cash in recent gains. To learn how this works, see our explainer on why profit-booking happens after a market run-up.
Each business is now valued on its own
One of the biggest changes after the Vedanta demerger and listing is that each business now trades on its own. Instead of buying one mixed company, investors can weigh power, aluminium, oil & gas and iron & steel one by one.
That also means each company's future will depend on its own work, growth and profits. Learning how to pick stocks for the long term becomes more useful in this setup.
Vedanta Power's growth plan
Vedanta Power has laid out a big plan. The company now runs 4.2 GW of thermal power. It plans to grow this to 12 GW by FY33. This is backed by planned capex of ₹66,000 crore. It has also guided for EBITDA to rise from about ₹1,500 crore now to ₹3,260 crore by FY29. The 600 MW Sakti plant and lower fuel costs should help. The company is also looking at nuclear power for the future. Its longer-term goal is to reach 20 GW, mostly by growing sites it already owns.
Vedanta Iron & Steel's growth roadmap
Vedanta Iron & Steel has also drawn interest for its plans. The business now makes about 4 million tonnes of steel a year. It aims to raise this to 15 million tonnes a year over time. It is a debt-free business with strong raw material access. This includes nearly 4 billion tonnes of iron ore across Goa, Odisha, and Karnataka. It also has about 800 KTPA of met coke capacity and gas pipeline links. To read numbers like these yourself, our guide on how to read a balance sheet is a good start.
What investors should watch next
Despite the sharp fall, the drop in Vedanta Power, Oil & Gas and Iron & Steel looks driven by profit-booking, not by any real weakness in the business. After 14 straight sessions of gains, some cooling off was perhaps due.
The bigger story is that the demerger has changed how investors view the group. Each business now trades on its own. Its own numbers, growth plans, and outlook are now in focus. As future results start to show these standalone businesses, investors will see how each one performs alone. That makes this phase an important one to watch. Investors weighing the metals angle can also read our note on the aluminium sector outlook.
Sources: BusinessToday, Business Standard, India Infoline and HDFC Sky market reports (3 July 2026). Prices and percentage moves are intraday and as reported on 3 July 2026; they can change through the session. This article is for information only and is not investment advice.