GMDC, NALCO Gain as India Joins US AI Supply Chain Pact
Overview
Gujarat Mineral Development Corporation (GMDC) and National Aluminium Company (NALCO) shares surged over 6% from their lows on Monday. The recovery followed pronouncements by the new US Ambassador to India, Sergio Gor, indicating India's invitation to join the US's Pax Silica initiative. This key US program aims to bolster AI and supply chain security, potentially driving significant demand for critical minerals and technology hardware.
US Initiative Sparks Market Rally
Shares of Gujarat Mineral Development Corporation Ltd. (GMDC) and National Aluminium Company (NALCO) staged a significant recovery on Monday, climbing as much as 6% from their intraday lows. The positive momentum in these key mineral stocks was directly linked to remarks made by the new US Ambassador to India, Sergio Gor.
Pax Silica: What It Means
Ambassador Gor indicated that India will be invited to join the US-led Pax Silica initiative as a full member next month. The Pax Silica program, a flagship effort by the US Department of State, focuses on artificial intelligence (AI) and supply chain security. It aims to foster a new consensus on economic security among allies and trusted partners.
The US State Department describes Pax Silica as a strategy that recognizes the accelerating technological revolution in AI, which is reorganizing the global economy and reshaping supply chains. The initiative anticipates significant economic value and growth flowing through all levels of the global AI supply chain, driving demand for energy, critical minerals, manufacturing, and technological hardware.
Mineral Stocks Rebound
Following these statements, GMDC shares traded 1.3% higher at ₹559. NALCO also saw a turnaround from its earlier decline, recovering to trade 0.3% higher at ₹349.05. The news suggests a potential increase in global demand for the types of resources and manufacturing capabilities that Indian companies like GMDC and NALCO can provide, integrating them more deeply into strategic international technology supply chains.
