Graphite India surges 7%, HEG hits 52-week high; what's driving GE stocks?

Graphite India, HEG shares movement

 

Shares of graphiteelectrode (GE) companies Graphite India and HEG rallied up to 7 per cent on the BSE in Tuesday’s intra-day deals after GrafTech International Ltd, a US-based GE company, announced its decision to permanently close its graphite electrode manufacturing facility in Monterrey, Mexico.

 

Graphite India surged 7 per cent to ₹755 on the BSE in intra-day deals amid heavy volume. The average trading volume at the counter jumped over five-fold with a combined 5.64 million equity shares changing hands on the NSE and BSE.

 

Share price of HEG hit a 52-week high of ₹753.90, soaring 4 per cent in intra-day trade. The stock surpassed its previous high of ₹749 touched on August 18, 2026.

 

 

At 12:57 PM on Tuesday, Graphite India and HEG traded higher by 5 per cent and 2 per cent, respectively. In comparison, the BSE Sensex was up 0.16 per cent at 77,080. CHECK Stock Market LIVE Updates 

What’s driving Graphite India, HEG stock price?

 

GrafTech International, a US-based graphite electrode company, announced its decision to permanently close its graphite electrode manufacturing facility in Monterrey, Mexico. The company plans to wind down operations in phases, with production expected to cease in early second quarter of the calendar year 2027 (Q2CY27).

 

This development comes as the global graphite electrode industry faced structural overcapacity, which weighed on electrode pricing and industry returns over the past few years. The closure of ~51kt of annual graphite electrode capacity, representing 7 per cent of global graphite electrode capacity, should aid industry capacity rationalisation and improve the demand-supply balance, according to ICICI Securities.

 

“This is positive for Indian graphite electrode manufacturers such as HEG and Graphite India, as lower global capacity could support pricing, with price hikes already expected from September 2026, which will improve realisations and help offset the increase in costs amid geopolitical tensions and support margin recovery for the companies going ahead. This, we hold a positive view on HEG and Graphite India,” the brokerage firm said. Check - TOP GAINERS NSE | TOP LOSERS NSE 

HEG – demerger

 

HEG board on Tuesday, September 1, 2026, approved Monday, September 7, 2026, as the effective date and record date for shareholder entitlement of its Composite Scheme of Arrangement, which will result in the creation of two independent listed entities: HEG Graphite (graphite electrode) and HEG Greentech (clean energy ventures).

 

Under the demerger, shareholders of HEG as on the record date will receive one fully paid-up equity share of face value ₹2 in the resulting company for every one equity share of face value ₹2 held in HEG, a 1:1 entitlement. 

 

Analysts at ICICI Securities remain positive on HEG, supported by the long-term structural transition towards Electric Arc Furnace (EAF)-based steelmaking, capacity expansion-led growth in offerings, and the value unlocking opportunity through the upcoming demerger. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.