Exide Industries shares hit all-time high; what's driving the rally?

The shares of Kolkata-headquartered battery maker Exide Industries climbed to an all-time high during the early trading hours on Monday, April 15. The stock peaked to ₹421.35 apiece on the National Stock Exchange (NSE), which was nearly 6% higher as compared to the last closing price.

At the BSE, the climb was sharper as Exide Industries reached an all-time high of ₹423.8 on the exchange.

After peaking during the first hour of trade, Exide Industries pared some of the gains. At 11:49 a.m., the scrip was valued at ₹418.00 on the NSE, up 4.9% as against the previous close.

The stock’s value was still at a 52-week high, and the year-to-date climb was 29.8%.

What's driving the rally in Exide stock?

Exide Industries shares have been edging higher since the past week, when it was announced that global automobile major Hyundai Motor, along with its group company Kia Corporation, has inked a pact with an arm of Exide Industries for localisation of electric vehicle (EV) batteries.

The memorandum of understanding was signed with Exide Energy Solutions, a wholly-owned subsidiary of Exide Industries, for the local production of Hyundai and Kia’s EV batteries, a media release stated on April 9.

Heui Won Yang, President and Head of Hyundai Motor and Kia's R&D Division, said India is a key EV market for the company, and it plans to gain strategically through the battery localisation pact with Exide.

"Through this global partnership with Exide Energy Solutions Ltd, we will gain a competitive advantage by equipping Hyundai Motor and Kia's future EV models in the Indian market with locally produced batteries," he had said.