Vedanta shares tank over 5 percent on Anti-Sterlite protests

People in Toothukudi are demanding the closure of Sterlite copper smelting plant alleging that it was polluting the area.

New Delhi: Shares of Vedanta tanked over 5 percent in the early trade on Wednesday following anti-Sterlite protests in Tuticorin, about 600 km from Chennai.

People in Toothukudi are demanding the closure of Sterlite copper (the copper unit of metals and mining conglomerate Vedanta) smelting plant alleging that it was polluting the area, and leading to severe health problems among the residents of the locality, besides depleting the water table.

At 11.03 am Vedanta shares were down 3.36 percent at 260.45 a piece on BSE. On NSE, shares of the company had dropped 6 percent to Rs 253.75.

The ongoing anti-Sterlite protests turned violent with thousands of people from nearby areas allegedly attacking the District Collectorate demanding closure of the Vedanta Group-run company. Nine people, including a girl, died on Tuesday in police firing.

Police said nearly 5000 protesters gathered near a local church and insisted on taking a out a rally to the district collectorate after they were denied permission to march to the copper smelter plant.

Initial pushing and shoving soon led to violent clashes, after agitated locals began hurling stones at police and overturned a vehicle. Security personnel used batons and burst teargas shells to break up the protest.

Many were injured in stone-pelting by the agitators, who also set some vehicles on fire. Windscreens of some government cars were smashed and bank premises were attacked by the rampaging mobs.

As the violence spiralled, police opened fire, killing nine people.

With PTI Inputs