&w=3840&q=100)
What's behind 40% surge in GMDC stock price in past one month?
Shares of GMDC moved higher by 8 per cent to hit an over 10-month high of ₹414 on the BSE in Friday's intra-day trade amid heavy volumes.
SI Reporter Mumbai
Share price of Gujarat Mineral Development Corporation (GMDC) today
Shares of Gujarat Mineral Development Corporation (GMDC) moved higher by 8 per cent to hit an over 10-month high of ₹414 on the BSE in Friday's intra-day trade amid heavy volumes. The stock price of this industrial minerals company now quotes at its highest level since July 25, 2024. It had hit a 52-week high of ₹439.90 on July 9, 2024.
In the past one month, GMDC outran the market by surging 40 per cent, as compared to 2 per cent rise in the BSE Sensex. It has bounced back 83 per cent from its 52-week low of ₹226.20 touched on March 3, 2025.
At 02:33 PM: GMDC was quoting 7 per cent higher at ₹408.10, as compared to 0.92 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped six-fold. A combined 14.53 million equity shares representing 4.6 per cent of total equity of GMDC changed hands on the NSE and BSE.
What's driving the 40% surge in GMDC's stock price in the past one month?
India's incentive scheme for recycling of critical minerals is in the final stages of getting approvals, as the country strives to meet its clean energy goals, according to a mines ministry government document, Reuters reported.
The scheme, which will include lithium-ion batteries, will give a capex subsidy to eligible recyclers, according to the document shared with reporters at an event.
India is planning to launch incentives for the recycling of 24 critical minerals this year, including lithium and cobalt, Reuters reported in April.
According to media reports, GMDC has targeted to spend ₹13,000 crore in capital expenditure till 2030. An estimated 46 percent of this capex is expected to be spent on acquiring land for various projects including the coal mining projects in Odisha.
Approximately ₹3,000- 4,000 crore (of the proposed capex) is for critical mineral projects - two of them. An additional ₹4,000 crore is for coal projects, ₹3,000 crore for lignite projects and the company would still need to spend in excess of ₹1,000 crore for existing lignite projects, as per reports quoting Roopwant Singh (IAS), Managing Director, GMDC.
Meanwhile, Roopwant Singh, while announcing March 2025 quarter results on May 15, 2025 said that FY25 has been a year of steady performance and disciplined operations for GMDC. The company has remained focused on consistency and efficiency, while also moving ahead with key long-term projects. The progress made in Odisha, particularly in the Baitarani West block, reflects the company's future-ready approach and commitment to timely execution in line with national energy priorities.
GMDC Outlook
GMDC derives its strength from a distinguished track record of operations, a dominant position in the lignite mining sector, a diversified clientele spanning multiple industries, and favourable demand prospects.
Looking ahead, GMDC has formulated strategic plans to significantly deepen its market presence by scaling up lignite production capacity by FY26. The company aims to elevate its lignite production to 15 million tonnes and is proactively seeking new mining leases to support this ambitious growth target.
Additionally, GMDC is poised to leverage its substantial 1,700 million tonnes of limestone reserves, aspiring to become a long-term limestone supplier by commercialising these extensive resources, the company said in its FY24 annual report.
About Gujarat Mineral Development Corporation
GMDC is India's second-largest Lignite-producing company and top merchant seller of Lignite. It is a State Public Undertaking of the Government of Gujarat. The company is engaged in mining lignite from deposit-rich areas across the state, and markets it to various high-growth industries, including textiles, chemicals, ceramics, bricks and captive power.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
39 minutes ago
- Economic Times
Gold prices fall over 1% as strong US jobs data clouds outlook for rate cuts
Gold prices saw a decline following a robust U.S. jobs report. This dimmed hopes for Federal Reserve rate cuts. Silver prices, however, surged to a multi-year high. The U.S. Labor Department revealed an increase in non-farm payrolls. Platinum and palladium also experienced gains. Trade policy uncertainties continue to influence market dynamics. Investors are closely monitoring economic data and geopolitical developments. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Gold prices slipped more than 1% on Friday after a stronger-than-expected U.S. jobs report dampened hopes for imminent Federal Reserve rate cuts this year, while silver soared to its highest level since gold fell 1.1% to $3,316.13 an ounce, as of 02:28 p.m. ET (1828 GMT), but rose 0.8% for the week so far.U.S. gold futures settled 0.8% lower at $3,346.60.A U.S. Labor Department report showed non-farm payrolls increased 139,000 in May, compared with estimates for a rise of 130,000, according to economists polled by Reuters. The unemployment rate stood at 4.2%, in line with came in line with estimates, which is a negative for gold as the data suggests that the Fed is going to stay on hold for a little while, Marex analyst Edward Meir policymakers are seen as waiting until September to cut rates, with just one more cut in view by December, based on trading in short-term interest-rate futures, which also showed traders backing away from bets that would pay off if the U.S. central bank delivered a third rate cut by the end of the is considered a hedge against inflation and geopolitical uncertainty. But higher rates reduce the appeal of bullion as it yields no the trade policy front there was little clarity after the highly anticipated call between U.S. President Donald Trump and Chinese leader Xi Jinping on Thursday."These are very difficult negotiations and they're not going to be solved just on the phone. If the tariff headlines become negative, that's bullish for gold," Meir silver fell 0.5% to $35.96, after hitting a more than 13-year high in silver "look like were driven by speculative flows seeing it is way too cheap versus gold, the break above the $35/oz mark amplified the move," said Giovanni Staunovo, UBS rose 2.5% to $1,158.20, highest since March 2022, while palladium was up 3.9% to $1,045.45. Both the metals were on track for weekly gains.
Economic Times
an hour ago
- Economic Times
Dollar gains ground against peers after robust US economic data
The dollar strengthened against major currencies following a better-than-expected U.S. jobs report for May, fueling speculation that the Federal Reserve might delay interest rate cuts. While the dollar saw weekly gains against the yen and franc, it remains down year-to-date. Positive economic data and easing trade tensions between the U.S. and China contributed to the dollar's upward movement. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Markets 1. Dollar mired in US economic weakness and trade limbo The dollar rose against major currencies on Friday after data showed better-than-expected U.S. jobs growth in May despite a slowdown from the previous month, suggesting the Federal Reserve might wait longer to cut interest Department data showed that employers added 139,000 jobs in May, fewer than the 147,000 jobs added in April, but exceeding the 130,000 gain forecast in a Reuters poll of dollar was up 0.95% to 144.87 against the Japanese yen and added 0.26% to 0.822 against the Swiss franc . The greenback extended gains against both safe-haven currencies following the U.S. currency was headed for a second straight weekly gain against both the yen and franc, but it was still down about 8% year-to-date and about 9% year-to-date, respectively, against both dollar has been weighed down by uncertainty from President Donald Trump's tariff policies and the prospects of negotiations with trading partners including China, the deficit spending and tax bill being considered in the U.S. Senate after it passed the House of Representatives, and the trajectory of recent economic data , said Eugene Epstein, head of structuring for North America at Moneycorp in New the market is starting to reverse some of its short positioning against the dollar in the wake of stronger-than-expected economic data, including the jobs data, Epstein said."Every bank is forecasting a weaker dollar, which I think is probably the right call long-term. But now you have this stretched positioning and suddenly reversing everything since you have stronger jobs numbers and stronger hourly earnings. The numbers are stronger overall and now good news is bad news because the 10-year yields went up so the rate cuts are not going to come," Epstein euro added to losses against the dollar immediately after the jobs data and was down 0.43% at $1.1395. It is still up about 10% year-to-date against the single currency, which is headed for a weekly gain against the greenback, had hit a six-week high of $1.14950 on Thursday following comments by European Central Bank President Christine Lagarde that the central bank was nearing the end of the monetary policy easing dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.53% to 99.20 on the session, but it is on track to notch a weekly and Chinese leader Xi Jinping held a rare leader-to-leader call on Thursday, as tensions over tit-for-tat tariffs appear to be easing. The dollar strengthened 0.23% to 7.191 versus the offshore Chinese yuan. Bitcoin rose 4.21% to $104,739.17. Ethereum rose 4.17% to $2,499.02.
Hans India
2 hours ago
- Hans India
Markets rally on RBI's surprise 50 bps rate cut
Mumbai: Benchmark equity indices surged on Friday, with the Sensex climbing 746.95 points and Nifty reclaiming the 25,000-level after the RBI cut interest rates by more-than-expected 50 basis points -- a third consecutive reduction -- and reduced the cash reserve ratio for banks to provide a major liquidity fillip to support the economy amid geopolitical and tariff headwinds. Recovering all the early lost ground, the 30-share BSE Sensex jumped 746.95 points, or 0.92 per cent, to settle at 82,188.99. During the day, it surged 857.85 points, or 1.05 per cent, to 82,299.89. The 50-share NSE Nifty reclaimed the 25,000-level and climbed 252.15 points, or 1.02 per cent, to settle at 25,003.05. Interest-rate-sensitive realty index jumped 4.74 per cent, while auto index went up 1.50 per cent and bankex climbed 1.25 per cent. The Reserve Bank of India's (RBI's) six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent. It also cut the cash reserve ratio by 100 basis points to 3 per cent, adding Rs 2.5 lakh crore to already surplus liquidity in the banking system. With the latest reduction, the RBI has cut interest rates by a total of 100 basis points in 2025, starting with a quarter-point reduction in February -- the first cut since May 2020 -- and another similar-sized cut in April. The central bank, at the same time, changed its monetary policy stance to 'neutral' from accommodative, with Malhotra saying further action will depend on incoming data. 'The Indian stock market responded optimistically to the RBI's surprise and aggressive growth push policy. The tremendous rate cut and liquidity boost via the CRR cut is expected to facilitate swift transmission of lower rates, reinforcing the RBI's strong commitment to fostering economic growth, boosting investment, and stimulating consumption. 'Rate-sensitive sectors, including banking, real estate, automobiles, and consumer durables are leading the rally,' Vinod Nair, Head of Research, Geojit Investments Ltd, said. From the Sensex firms, Bajaj Finance surged 4.93 per cent and Axis Bank climbed 3.15 per cent. Maruti, IndusInd Bank, Bajaj Finserv, Eternal, Mahindra & Mahindra, Tata Steel, Kotak Mahindra Bank, Titan, HDFC Bank, and NTPC were among the other major gainers. Bharti Airtel and Sun Pharma were the laggards. 'A third straight cut in repo rates this year with 50 bps cut instead of an estimate of 25 bps is a pleasant move.
