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Vedanta stock tanks 2% today after Foxconn ends $19.5 bln semiconductor JV; No impact on India, says IT Min

Vedanta stock tanks 2% today after Foxconn ends $19.5 bln semiconductor JV; No impact on India, says IT Min
Vedanta stock tanks 2% today after Foxconn ends $19.5 bln semiconductor JV; No impact on India, says IT Min

After Foxconn withdrew from a $19.5 billion semiconductor joint venture with the billionaire Anil Agarwal-led company, Vedanta's share price fell 2% to Rs 274.90 today. According to Foxconn, it is "working to remove the Foxconn name from what is currently a fully-owned Vedanta entity." Foxconn has no affiliation with the organization, and efforts to maintain its previous identity could confuse potential investors, according to Hon Hai Technology Group (Foxconn).

Vedanta shares have been flat over the past six months despite a bullish attitude in the domestic market. Although the stock has increased by over 21% over the previous year, it has decreased by 12.5% over the last six months. The market value of the company is Rs. 1.03 lakh crore at the current share price of Rs. 277.50.

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Vedanta stated that it is totally dedicated to its semiconductor project after Foxconn withdrew and has lined up additional partners to establish India's first foundry. We have lined up additional partners to establish India's first foundry, and Vedanta affirms its unwavering commitment to its semiconductor fab project. We have the license for 40 nm production-grade technology from a well-known Integrated Device Manufacturer (IDM), and we plan to expand our semiconductor team, according to a statement from Vedanta.

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Rajeev Chandrasekhar, Minister of State for Electronics and IT, stated that the ambition of India to build semiconductor fabrication plants is unaffected by Foxconn's decision to leave the Vedanta joint venture. "Foxconn's decision to end its joint venture with Vedanta has no bearing on India's Semiconductor Fab goals," the statement reads. tweeted Chandrasekhar. Chandrasekhar tweeted, "In simple terms, it implies that both firms may & will now pursue their goals in India independently, and with appropriate technological partners in Semicon n Electronics. It's not for the government to get into why or how two private companies choose to cooperate or choose not to.

Technical Outlook for Vedanta Stock
"Since March 2023, Vedanta Limited has been trading in a phase of consolidation, with obstacles at Rs 295 and support around Rs 260 levels. The stock is under the 200ema on daily charts, which assured that pressure was applied to the stock on each advance over the past few weeks. "Unless it gives a breakout or breakdown of thing range, one should avoid trading in the short term," said Gaurav Bissa, VP, InCred Equities. The stock is projected to move in the Rs 260-295 range in the next days, even if it currently trades comfortably above 200 ema on the weekly charts.