GMDC Shares: Gujarat Mineral Development Corporation (GMDC) shares surged 13% on Tuesday, September 23, marking their biggest single-day gain in more than two months. Amid heavier-than-normal trading, the stock reached a record high of ₹638.70 on the National Stock Exchange (NSE).
According to exchange data, the stock has gained nearly 50% in the past month, outperforming benchmark and broader market indices.
On the NSE, GMDC’s volume increased 5.3 times to 37.2 million shares, compared to an average daily volume of 70.73 lakh shares. On the BSE, the average daily volume during the past two weeks was 10.73 lakh shares, compared to 31.1 lakh shares during the same period.
Why is GMDC’s stock rallying?
Investor interest in GMDC shares increased last month after China lifted a ban on the export of rare earth magnets to India. GMDC shares surged 26% last week alone and have gained 20% in the past two trading sessions.
Meanwhile, the government’s renewed focus on rare earth minerals also boosted GMDC shares. According to a CNBC TV18 report, the government is negotiating with Peru for critical mineral supplies and, for the first time, a separate chapter on rare earths has been included in the ongoing free trade agreement (FTA) negotiations.
The report states that the second round of these talks took place last month, and the next is scheduled for October.
According to a report published in The Hindustan Times on Tuesday, Chinese Foreign Minister Wang Yi assured External Affairs Minister S. Jaishankar last month that Beijing would resume supplies of fertilizers, rare earth minerals, and tunnel boring machines (TBMs), alleviating concerns of Indian manufacturers facing shortages.
China, which processes over 90% of global rare earth minerals (REE), imposed export licensing requirements for seven rare earth elements and magnets in April, tightening global supply chains. India, which imports over 70% of its REE from China, is facing increasing constraints.
Rare earth minerals, including neodymium, dysprosium, and terbium, are critical for EV motors, smartphones, missile systems, and high-performance automotive components.
Earlier reports indicated that GMDC was interested in establishing a rare earth element (REE) processing plant in Gujarat.
India is considering a transition to green energy in various sectors, and GMDC is considering conducting a scoping study to determine the economic viability of the project and outline at least one opportunity to develop a processing plant for deposits in Ambadongar, Chhota Udaipur district, in the Indian state of Gujarat.
As of 2:26 pm, GMDC shares traded 12.84% higher at ₹638, outperforming the Nifty Smallcap 250 index, which was down 0.33%.
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