Moschip Technologies' share continues to rally: Here's the reason for its record surge

During the early trading session on Friday, Moschip Technologies' share witnessed a significant jump. At the end of the Thursday trading session, Moschip Technologies' stock zoomed 19 per cent, reaching its 52-week high of Rs 228.87. At 10.40 am, the share was at Rs 236.35.

Why is Moschip Technologies' share rising?

Experts say that the sudden rally in the electronics share can be attributed to the GST reforms announced by Finance Minister Nirmala Sitharaman on Wednesday evening.

The GST on the sector was reduced to 18 per cent from 28 per cent. The investor sentiment on the share was also buoyed by the central government's backing of the semiconductor sector.

On Wednesday, Prime Minister Narendra Modi met with the top executives of the semiconductor industry at SEMICON India and expressed confidence in India's potential in the crucial sector.

"Earlier today, I interacted with leading CEOs from the world of semiconductors during SEMICON India 2025. Their confidence in India’s potential is evident, and they are betting big on India as a global hub for semiconductor innovation and manufacturing. I talked about India's relentless reform journey in this sector, which includes building robust infrastructure and an emphasis on skilling as well as innovation," he said.

Many major deals were made during the event.

The government's semiconductor push and recent GST reforms have resulted in the rally of the share.

The Centre, on Wednesday, made GST simpler by eliminating the 12 per cent and 28 per cent GST slabs.

What is Moschip Technologies?

Moschip Technologies is a semiconductor company. It makes silicon and product engineering solutions. It also gives services for semiconductors, SoCs, IoT solutions, and AI/ML, etc.

The company envisages that the market for smart-energy meter integrated circuits (ICs) is expected to grow at a 7%. On September 4, the market capitalisation of the firm stood at Rs 4,324.26 crore.

"This rally in the electronics share can be attributed to the GST reforms announced by Finance Minister Nirmala Sitharaman on Wednesday evening. The stock benefits from the GST rate reduction from 28% to 18%," said Seema Srivastava, Senior Research Analyst at SMC Global Securities, told Mint.