GMDC Share Price Falls 14% From Day's High

GMDC share price erased morning gains to extend decline for third consecutive trading session. The stock has fallen over 14% from its intraday high on Thursday.

Prior to Tuesday's decline, shares of Gujarat Mineral Development Corporation Ltd. had rallied more than 18% in two days.

That rally in GMDC share price came after China removing restrictions on exports of rare earth magnets to India.

Besides, The government’s renewed emphasis on rare earth minerals lifted GMDC shares. India is also in talks for a Free Trade Agreement with Peru, which now includes a dedicated chapter on rare earths to secure critical mineral supplies.

China has told India it will restart shipments of fertiliser, rare earth minerals, and tunnel boring machines, easing worries for local manufacturers hit by shortages.

Beijing had earlier imposed a licence rule for exports of rare earths and magnets, a move that disrupted supply chains worldwide. The step created hurdles for India, which sources more than 70% of its rare earth needs from China.

Minerals such as neodymium, dysprosium, and terbium are key inputs for electric vehicle motors, smartphones, missile technology, and advanced auto components.

State-run GMDC plans to set up a facility in Gujarat to process rare earth elements.

GMDC share price rose 58.76% on year-to-date basis, and 39.79% in 12 months' One analyst tracking the company suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an downside of 53.1%.