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Exide Shares Hit New All-Time Highs at NSE as Hyundai and Kia Deal Brings Propulsion

Battery manufacturer Exide saw its shares hit new all-time highs of Rs. 397.85 at India’s National Stock Exchange (NSE) on Tuesday as exuberance over a landmark deal with Hyundai Motors Company and Kia Corporation brought inflows. The shares were up by 1.84% at the time of writing, building from Monday’s gain of 17.18%, which came following the announcement.

Exide’s deal with South Korea’s auto giants is in the form of a Memorandum of Understanding (MoU) that will see the Indian battery maker supply the two companies with batteries for their Indian EV market. Exide will manufacture  lithium-iron-phosphate (LFP) battery at a time when India is increasing its investment in renewable energy resources, of which the EV sector is set to be a key driver.

The Indian government is leading the country towards its dream of generating 50% of all its energy needs from renewable resources by 2030. That will involve ditching petrol and diesel-fueled vehicles for “greener” electric vehicle options.  While India is the world’s most populous country, its EV market share pales in comparison to other leading economies like the United States, China, Japan and Germany.

Furthermore, India’s position as the world’s fifth-largest economy makes it’s a market ripe for EV takeoff. Tesla CEO Elon Musk reiterated this on Tuesday when he stated in an X spaces interview with Nicolai Tangen, the CEO of Norges Bank Investment Management that Tesla’s move into the Indian market is a “natural progression.” According to Counterpoint Research, India’s EV sales grew by nearly 100% in 2023 and are projected to grow by 65% in 2024. Battery production is central to the success of the EV transition globally, and Exide’s large market footprint places it in a strong position to leverage the expected surge in EV demand.  

Technical analysis

The buyers are currently in control of the Exide share market, as indicated by the RSI indicator. The upward movement is likely to continue if the buyers keep the price above the 375.40 pivot mark. That could see it breach the resistance at 400.65 and potentially test 411.70 in extension. On the other hand, a slip below 375.50 will favour control by the sellers, with the first support coming at 355.10. Furthermore, a break below that support could build the momentum to head lower to test 330.15.