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Vedanta and Hindustan Zinc’s shares fell by nearly 1% on June 3 after officials from the Enforcement Directorate visited some of the company’s offices.
The ED visit links to an ongoing FEMA probe. Reports suggest that authorities are checking foreign exchange transactions connected to the group. This news has created concern in the market and led to mild selling in both stocks.
Vedanta informed stock exchanges that ED teams visited the offices of the company and its subsidiary Hindustan Zinc. The firm shared this update after exchanges asked for clarity on media reports that mentioned searches at locations linked to the group.
The company said it is fully cooperating with authorities. It also stated that it is sharing all required information during the process. Vedanta added that the investigation is still ongoing at this stage.
The firm also repeated its focus on following all rules and said that it will continue to follow SEBI regulations and inform exchanges about important updates. This message aimed to calm investors as uncertainty increased after the ED visit.
Regulatory actions often trigger short-term volatility as investors reassess risk exposure across affected companies. The ongoing FEMA probe adds uncertainty, while strong fundamentals and restructuring plans continue to support the long-term outlook. Market direction may depend on clarity from authorities and progress in the investigation.
Vedanta shares touched an intraday low of about Rs. 330 during the session. Hindustan Zinc shares also dropped to Rs. 618. The fall remained limited, showing that investors reacted with caution instead of panic.
Short-term trends show some weakness in both stocks. Vedanta shares dropped 6% in the past week, while Hindustan Zinc shares also saw a small decline during the same period. Despite this, both stocks still show gains over the past month.
Long-term performance remains strong for both companies. Vedanta shares have delivered solid returns over the past year and even higher gains over five years. Hindustan Zinc shares have also provided steady returns to investors.
The development comes at a time when Vedanta is working on a major demerger plan. The company plans to split its businesses into separate listed units. This move aims to unlock value and give investors direct exposure to each segment.
Recent updates around a Jaypee Group asset bid have also kept the Anil Agarwal-led group in focus.
Also Read: FEMA Probe at Vedanta: What Does the ED Raid Mean for Investors?
