Schneider shares hit upper circuit on parent co's AI deal

Mumbai: Shares of Schneider Electric Infrastructure surged 10% to their highest tradeable limit of the day after its French parent Schneider Electric announced it would deliver solutions to enable customers to build and operate AI infrastructure with Taiwan's Foxconn or Hon Hai Technology Group.Analysts said that Monday's rally in the stock was driven by the initial assumptions that the India unit would benefit from the deal, but valuation of the stock remains high.Shares of the India listed entity ended at ₹1,216.2 on Monday, up 10%, while the Nifty 500 index was up 1.3%.Agencies"Monday's rally in the stock was largely sentiment-driven following the parent company's partnership announcement with Foxconn," said Harshit Kapadia, vice president at Elara Securities. "The market is speculating that since the listed Indian subsidiary derives 20% of its revenue from the parent, India could emerge as a low-cost manufacturing hub for the project, potentially benefiting the Indian unit."Schneider Electric and Foxconn said the production in this project would begin later in 2026."Together, the companies aim to deliver integrated, ready-to-deploy solutions that enable customers to build and operate AI infrastructure with greater speed, efficiency, and predictability across regions," said a joint statement by the two companies.The partnership is sentimentally positive for the India-listed entity, although the extent of any direct benefit remains unclear at this stage, said Avinash Pathak, research analyst, LKP Securities.