Vedanta accelerates on shareholder approval for hiking inter-corporate loan limit

Vedanta, a mining conglomerate, is trading at its day's high on Wednesday based on reports of the company getting its shareholders' approval on the proposal to raise its limit of inter-corporate loans to Rs. 80,000 crores.

The company said in its filing that the postal ballot voting has been passed with requisite majority in favour of hiking the inter-corporate loan limit. 

Vedanta had been seeking approval to  extend the limit of inter corporate loans to 80,000 crores from 60,000 crores. Vedanta had previously seeked successfully, approval of shareholders for Rs. 60,000 crores as inter-corporate loan limit in October 2014. 

Vedanta has grossly under-performed market with commodity prices taking a beating. Now that commodity prices are expected to be stable Vedanta is stabilising as reflected in its performance on bourses. The stock has gone up almost 19 per cent in 1 month's time and over a 1 year period the stock is down by almost 34 per cent. The stock is trading above its 200-DMA indicating bullishness in the scrip. 

Broader markets are trading firm on Wednesday taking cues from European markets which are trading at day's high. Sensex at 26638 is up by almost 0.90 per cent or 240 points.