HEG and Graphite lead the pack

HEG and Graphite India stocks have been leading the gainers list on the BSE since the opening bell today. HEG rose 15% to Rs.496.25 and Graphite India rose 13% to Rs.522.40, just a tad away from its 52-week high of Rs.522.75.

The new development as such was only in HEG, where Singularity Growth Opportunities Fund said that it would invest up to Rs.500 crore in Bhilwara Energy Ltd, a subsidiary of HEG's promoter, RSWM Ltd.

The initial investment of Rs.250 crore will bring down HEG’s stake in Bhilwara Energy from 49.01% to 44.30%, with Singularity holding 9.6% post investment.

Apart from this, the reason could due to positive market sentiment and favorable demand forecasts, particularly the anticipated growth in Electric Arc Furnace usage in global steel production, which benefits companies like Graphite India.

Plus, the U.S. is considering additional tariffs on Chinese battery-grade graphite, aiming to support domestic production and address concerns over China's market dominance. But having said this, Western companies face difficulties in matching China's established graphite supply chains, impacting efforts to diversify sources outside of Asia, which is automatically a pointer to India.