China review of US usage lifts local graphite company stocks
HEG and Graphite India, surged in Tuesday's trading after China introduced a stricter review process for end-use of graphite exports to the US. Analysts said sentiment in these shares perked up on expectations restrictions by China could drive up demand for Indian graphite makers.
HEG's shares soared 14.2% while Graphite India gained 9.1%. Key indices rose 0.7% each, while the BSE 500 index gained 0.8%.
Analysts said that China's move could restrict exports to the US,. China is the world's leading producer of graphite, used for military applications and making of Electric Vehicle batteries.
«Indian companies engaged in graphite-related business are expected to benefit from this as the demand is likely to shift towards India after China's announcement,» said Manish Chowdury, head of research, StoxBox. «This is why the stocks rallied today.»
Chowdhury said that further moves depend on whether there is a reversal in China's stance. China's decision comes after incoming US President Donald Trump's crackdown on semiconductors in China.
Stock Trading
A2Z of Stock Trading — Online Stock Trading Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Point & Figure Chart Mastery: A Comprehensive Trading Guide
By — Mukta Dhamankar, Full Time Trader, 15 Years Experience, Instructor
Stock Trading
Stock Valuation Made Easy
By — Rounak Gouti, Investment commentary writer, Experience in equity research
Stock Trading
A2Z of Stock Market for Beginners: Stock Market Course For Beginners
By — elearnmarkets, Financial
