Vedanta's stock surged 4.36% to close at Rs 355.45 on the Bombay Stock Exchange. The rise came late in trading after reports that Vedanta is negotiating to buy a 51% stake in Cairn India from Cairn Energy, which holds 62.4%. The deal could be worth between $8 billion and $8.5 billion. Analyst Alok Deshpande from Elara Securities said, "The deal is positive for the stock, as even the lower-end of the deal ($8 billion) will value Cairn India at $15.7 billion compared to the current market cap of $14.4 billion." He added, "In the short term, we expect the stock to rally towards the deal valuation upon the official announcement, which is expected on August 16, according to media reports." On the London Stock Exchange, Cairn Energy’s share price also rose nearly 2% to 4.61 pounds. However, Vedanta Resources Plc fell 5.5% to 20.61 pounds, and Sterlite Industries, a Vedanta group firm, dropped over 4% to Rs 160.70, the biggest loser on the Sensex. Deshpande noted, "If the deal happens, it is obvious that Vedanta is planning to be a long-term investor. In that case, we feel the deal valuation is fair, considering our expectations of a reserve upside from other Rajasthan fields in some time in the future."