Graphite India share price soars 18% to touch 52-week high; here’s what’s behind the sudden rally

Graphite India share price surged nearly 18% to hit a fresh 52-week high on Wednesday, after global graphite electrode maker GrafTech International announced a 30% price increase, raising hopes of a recovery in global electrode realisations.

GrafTech International’s shares also rallied around 15% overnight on Wall Street following the pricing announcement, signalling that the move has been positively received by investors.

The price hike is viewed as a positive development for Indian graphite electrode manufacturers, including Graphite India, as it suggests a potential improvement in global electrode pricing following a prolonged period of weak realisations.

According to various reports, experts believe that sustained higher electrode prices could translate into improved realisations and support margin expansion for domestic manufacturers.

Graphite India, HEG in focus

Graphite India is one of India’s leading graphite electrode manufacturers, with an installed electrode manufacturing capacity of around 98,000 tonnes.

According to analysts cited in reports, GrafTech’s latest pricing move is a positive read-through for the graphite electrode businesses of Graphite India and HEG. Graphite India is currently the only listed company with direct exposure to the business, while HEG’s graphite electrode division is expected to be listed on the exchanges next month following the completion of its demerger.

According to reports, analysts believe the global price increase could be an early sign of a turnaround in the electrode pricing cycle, potentially improving earnings visibility for Indian manufacturers if the trend sustains.

Graphite India share price today

Graphite India share price today opened at ₹805.10 apiece on the BSE, the stock touched an intraday high of ₹870 per share, and an intraday low of ₹775 apiece.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said Graphite India had been consolidating in the ₹679–707 range since 5 August and has now broken out of it on strong volume, signalling renewed buying interest.

According to Shah, the stock is trading above key moving averages, while the Relative Strength Index (RSI) has turned higher, indicating improved bullish momentum.

He further noted that the DI lines have widened, with the positive directional indicator (DI+) positioned above the negative directional indicator (DI-) on the ADX, suggesting that bulls are firmly in control.

“The previous swing high zone of ₹800–810 is likely to act as an immediate support. The stock is expected to extend its pullback as long as it sustains above this zone,” Shah said.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.