Shares of state-run mining and energy companies Gujarat Mineral Development Corporation (GMDC) and NLC India surged sharply in trade on April 16, rising up to 16% amid strong buying interest and heavy volumes.
GMDC shares were trading at ₹716.20, up ₹93.90 or 15.09%, while NLC India stock rose to ₹301.95, gaining ₹26.75 or 9.72% during the session. Both stocks witnessed a sharp spike in volumes, indicating robust participation from market participants.
What is driving the rally?
According to dealers, the rally in both counters is being driven by strong volumes and anticipation of potential positive policy developments in the mining and energy space. While no official announcement has been made so far, market participants appear to be positioning ahead of possible regulatory or sectoral triggers.
Importantly, the price action is backed by large volumes, lending credibility to the move and suggesting institutional or informed buying rather than purely speculative activity.
Volume-backed momentum
GMDC saw significant trading activity, with volumes running well above average levels, while NLC India also witnessed a surge in traded quantities. The strong volume support indicates sustained demand and reinforces the bullish momentum seen in both stocks.
About GMDC
GMDC is one of India’s leading mining companies and operates under the Government of Gujarat. The company is primarily engaged in the exploration and mining of lignite, bauxite, and other minerals, with lignite being its core business.
It also has a presence in power generation through lignite-based thermal plants and plays a key role in supplying fuel to various industries, including cement and chemicals.
About NLC India
NLC India Limited is a Navratna public sector enterprise under the Ministry of Coal, primarily engaged in lignite mining and power generation. The company operates large-scale thermal power plants and has been expanding its footprint in renewable energy, including solar and wind projects.
NLC India has also been focusing on diversifying its energy mix and increasing capacity, aligning with India’s broader transition towards cleaner energy sources.