Rare earth PSU stocks rally: GMDC, NLC India shares surge up to 6%

The shares of Gujarat Mineral Development Corporation (GMDC) and NLC India significantly surged on July 22. This came as rare earth stocks saw significant interest from investors.

Latest data from China shows that the country boosted shipments of rare earth magnets in June, after a global supply squeeze that threatened factory closures and heightened trade tensions. Total export of the magnets rose to 3,188 tons last month, more than double of the 1,238 tons exported in May in the midst of China's curbs.

GMDC shares gained around 6 percent to trade at Rs 462 apiece, extending gains for the fourth consecutive session. Earlier, during the day, the stock rallied further to hit a fresh 52-week high of Rs 468 apiece.

The stock has recorded significant gains in recent days, amid buzz over Prime Minister Narendra Modi’s prospective meeting on rare earth magnets. More than 1.9 crore shares of GMDC were involved in active trade so far today, which is nearly three times higher than its 10-day average volume.

NLC India shares gained over 5 percent to trade at Rs 242 apiece, snapping a two-day losing streak. This comes amid buzz over the state-owned company's plans to list its renewable energy arm NIRL. In an interview to PTI, NLC India Chairman and Managing Director (CMD) Prasanna Kumar Motupalli said that the public sector enterprise is targeting to raise Rs 4,000 crore through the initial public offering route and will file draft papers with markets regulator SEBI in the first quarter of 2026-27.

"We are targeting Rs 4,000 crore through IPO route… So by September we will be in a position to ramp up our renewable assets through NIRL and by March 2026 we will be able to complete the legal and the financial due diligence and in the first quarter of 2026-27 we will be going for DRHP through the SEBI," the CMD told PTI.

Earlier in May, NLC India had signed a MoU with Indian Rare Earths Limited (IREL) for collaboration in the field of critical minerals

The sharp rise in the share price comes on the back of heavy trading volumes. More than 36 lakh shares of the company were involved in active trade today so far, as seen as 1.30 pm. This is nearly 3.5 times that of its 10-day average volume. The stock has gained over 400 percent in the past five years.Also read: Our LIVE blog on stock market updates