ET NEWS

Shares of Gujarat Mineral Development Corporation (GMDC) continued their strong upward momentum, surging 35.5% so far in September and touching a fresh 52-week high of Rs 547 on the BSE on Monday.The rally has been supported by robust investor interest, sectoral tailwinds, and optimism surrounding the company’s rare earth mining initiatives.The PSU stock has witnessed significant trading activity with heavy volumes, underlining strong participation from both institutional and retail investors. GMDC has turned into a multibagger over the past six months, delivering returns of more than 107%, while its one-year returns stand at 46.5%.Over the last five years, the stock has skyrocketed by more than 1,100%, making it one of the standout performers in the mining sector.The sharp rise in GMDC shares comes amid heightened expectations from the government’s push towards rare earth mining to strengthen domestic supply chains for critical minerals.These minerals, essential for electric vehicles, renewable energy equipment, and high-tech electronics, have placed GMDC in a strategic position as it develops rare earth deposits in Gujarat’s Chhota Udaipur district. The company aims to build an integrated supply chain from mining to processing, aligning with India’s broader vision of self-reliance in clean energy and technology.GMDC, India’s second-largest lignite producer and a zero-debt company, has also diversified into thermal, wind, and solar energy, strengthening its presence in the energy and resources space.Despite reporting a consolidated net profit of Rs 164 crore in the June quarter, down 11% year-on-year, and revenue of Rs 810 crore, down 8% YoY, the stock has continued to attract buyers, driven by the company’s growth prospects in rare earth elements and its strong balance sheet.Brokerages, however, remain cautious. Nuvama recently retained its ‘Reduce’ rating on the stock, citing expensive valuations and slower-than-expected ramp-up at certain lignite mines. It trimmed its target price from Rs 237 to Rs 231 while awaiting clearer developments on GMDC’s rare earth projects.Also read: Sebi may ease FPI entry with ‘automatic window’ to boost capital inflows(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Tata Steel shares jumped 2.8% on Monday to hit a new 52-week high of Rs 172.45 on the BSE, as optimism surrounding the steel sector drove investor interest. The upmove was supported by favourable global supply dynamics, domestic tariff protection, and positive commentary from leading brokerages.The rally in Tata Steel comes amid a broader surge in metal stocks, with investors betting that China’s ongoing production curbs, coupled with India’s extended safeguard duty on imported steel, will support prices and strengthen domestic producers.India recently extended its safeguard duty for three years, creating a 9% price advantage for local steelmakers, thereby insulating them from volatile global swings.China’s “anti-involution” campaign, which includes production caps and plant closures, is also expected to tighten global supply, reducing competition and providing a floor for steel prices. Analysts believe that the combination of India’s tariff protection and China’s production restrictions may help stabilise steel pricing in the near to medium term.Brokerages have also turned more constructive on the steel sector.Analysts at CLSA also pointed out that steel prices are expected to firm up, backed by global recovery trends and seasonal demand. They added that Indian producers, including Tata Steel, are well-placed to capitalise on improving demand conditions.Additionally, experts highlighted the potential role of currency movements, noting that metals historically share an inverse relationship with the U.S. dollar index. With the index hovering near key levels, a further breakdown could act as a tailwind for the entire metal space.Market experts believe that despite subdued consumption during the monsoon season, the industry is poised for a rebound in the coming months.Further, according to CNBC TV-18, global brokerage firm Morgan Stanley has also upgraded Tata Steel to an Overweight rating while raising its price target to Rs 200.Also read: Sebi may ease FPI entry with ‘automatic window’ to boost capital inflowsThe firm noted that Tata Steel is well-positioned to benefit from the expansion in hot-rolled coil (HRC) prices, along with any optionality from an extension of safeguard duties. Morgan Stanley highlighted that domestic businesses stand to benefit from spreads expansion, and it maintained a preference for JSW Steel due to its growth profile and larger domestic exposure, but reiterated optimism for Tata Steel as well.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)