Explained — What triggered a recovery in GMDC, NALCO shares on Monday

Shares of Gujarat Mineral Development Corporation Ltd. (GMDC) recovered as much as 6% from the lows of the day to trade with gains on Monday, January 12, after remarks from the new US Ambassador to India, Sergio Gor, which also triggered a recovery in the stock markets.

The recovery in shares of GMDC and NALCO pertains to Gor's remarks on India being part of the US-led Pax Silica initiative.

Pax Silica is the US Department of State’s flagship effort on AI and supply chain security, advancing new economic security consensus among allies and trusted partners. Gor said that India will be invited to join the Pax Silica alliance as a full member next month.

"We recognize that the technological revolution in AI is accelerating, increasingly reorganizing the world economy, and reshaping global supply chains. We believe that economic value and growth will flow through and across all levels of the global AI supply chain, driving historic opportunity and demand for energy, critical minerals, manufacturing, technological hardware, infrastructure, and new markets not yet invented," the US State Department Website describes Pax Silica in this manner.

Shares of GMDC are currently trading 1.3% higher at ₹559, while those of NALCO have also recovered from the lows of the day and are now trading 0.3% higher at ₹349.05.