Highlights
- Gujarat Mineral Development Corporation (GMDC) shares jumped nearly 25%.
- Shares hit a 52-week high of ₹472.40 amid rare earth sector speculation.
- Over 63.5 lakh shares were traded.
- Potential government meeting on rare earth magnets is fueling investor excitement.
- China’s surge in rare earth magnet exports and potential policy developments are driving momentum in the critical minerals sector.
Shares of Gujarat Mineral Development Corporation (opens in a new tab) (GMDC), a state-owned mining enterprise, surged nearly 25% over five trading sessions—reaching a 52-week high of ₹472.40—on the back of buzz in the rare earth sector and heavy trading volume. According to The Economic Times, the rally was triggered by renewed investor interest in critical mineral plays, speculation around a high-level Indian government meeting on rare earth magnets, and fresh Chinese export data showing a rebound in magnet shipments.
Over 63.5 lakh GMDC shares traded on Wednesday, totaling ₹295 crore in turnover and pushing the stock’s 2025 gains to 43.5%. The activity suggests strong institutional and retail engagement, with three times the average 10-day volume logged midweek.
Driving the excitement is unconfirmed talk of a rare earth-focused meeting chaired by Prime Minister Narendra Modi. While details remain undisclosed, the mere possibility of central policy alignment or incentives for rare earth development has ignited a wave of buying across the sector. However, note that the talk of a meeting has not been confirmed yet by the Indian government.
Talking Rare Earth Elements?
Adding fuel to the fire, China’s June exports of rare earth magnets surged to 3,188 tons—up sharply from May’s 1,238 tons—following the easing of some trade restrictions. The supply boost has temporarily calmed market fears over component shortages for EVs, wind turbines, and high-tech manufacturing.
PSU Momentum: NLC India Also Gains
Fellow public sector unit NLC India (opens in a new tab) also climbed 2.8% Wednesday, driven by rare earth collaboration updates and its ongoing renewable energy IPO plans. In May, NLC inked an MoU with Indian Rare Earths Ltd (opens in a new tab) (IREL), underlining its long-term commitment to critical minerals.
Consideration for Investors:
- Will the rumored Modi meeting translate into a formal policy announcement or incentive scheme? How will industrial policy evolve in India?
- Can GMDC and NLC rapidly scale upstream REE production or form international offtake agreements?
- How will India balance its REE ambitions with China’s dominant processing capacity?
REEx Take: GMDC’s spike reflects bullish sentiment on India’s rare earth potential—but concrete policy action is still pending. Retail investors should watch for confirmation of government initiatives and partnerships that could reshape India’s role in global REE supply chains.
Source: The Economic Times | (opens in a new tab) Author: Riya Sharma, ETMarkets.com
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