Shares of Indian companies with China-linked operations surged on March 17 after Prime Minister Narendra Modi, during a podcast with Lex Fridman, emphasized the need to restore India-China relations. Companies like UNO Minda, Amara Raja Energy & Mobility, and Kaynes Technology saw gains as investors reacted to the potential revival of economic cooperation.
Shares of several Indian companies with exposure to China surged on March 17 after Prime Minister Narendra Modi, during a podcast with Lex Fridman, emphasized the need to restore India-China relations. The statement, which came amid ongoing geopolitical tensions, boosted investor sentiment, driving gains in stocks like UNO Minda, Amara Raja Energy & Mobility, and Kaynes Technology.
Stock Market Reaction
Consumer electronics and automotive-related stocks saw notable gains following PM Modi’s remarks. Kaynes Technology, a key player in electronics manufacturing, rose nearly 2% to ₹4,310 per share. The company imports a significant portion of its components from China, making it a beneficiary of improved trade relations.
Automotive equipment manufacturer UNO Minda, known for its electric vehicle (EV) components, surged over 4% to ₹941.15 per share. The company had signed an agreement with China’s Inovance Automotive in June 2024 to expand its electric four-wheeler product lineup. The deal aims to strengthen India’s EV market and may transition into a joint venture pending approvals.
Minda Corporation, the flagship of Spark Minda, which specializes in automotive solutions, also gained nearly 2% to ₹527 per share. In September 2024, it had signed a technology licensing agreement with China’s Sanco Connecting Technology to locally develop EV connection systems, including charging gun assemblies, Power Distribution Units (PDU), and Battery Distribution Units (BDU).
Meanwhile, Amara Raja Energy & Mobility, one of India’s leading battery manufacturers, climbed over 1% to ₹976 per share. The company had partnered with Chinese EV battery maker Gotion in June 2024 to produce lithium-ion batteries domestically.
The positive market movement extended to the chemical sector, with stocks like PI Industries, Neogen, SRF, and Navin Fluorine rising over 1% each.
PM Modi’s Comments on India-China Relations
During his podcast interview with Lex Fridman, PM Modi highlighted India and China’s long history of cooperation, despite recent tensions.
The relationship between India and China isn’t something new. Both nations have ancient civilizations and have contributed to the global good for centuries. Of course, differences are natural, but our focus should be on ensuring these differences do not turn into disputes”
PM Modi
Referring to the 2020 clashes at the Line of Actual Control (LAC) in eastern Ladakh, PM Modi acknowledged the tensions but expressed optimism about restoring trust.
We are now working to restore conditions to how they were before 2020. Slowly but surely, trust, enthusiasm, and energy will return. Our cooperation is essential for global stability and prosperity. The 21st century belongs to Asia, and we want India and China to compete in a healthy and natural way.”
PM Modi
Market Outlook
Investors reacted positively to PM Modi’s comments, as improved India-China relations could strengthen trade, particularly in sectors reliant on Chinese imports and technology partnerships. However, geopolitical risks remain, and market experts caution that sustained progress will depend on diplomatic efforts in the coming months.
