Sterlite Technologies Ltd (STL) shares hit the 5 percent upper circuit at ₹636 on Wednesday, while HFCL climbed to ₹212 following reports that the US administration is considering restrictions on Chinese data centre equipment imports. According to a Reuters report, the Trump administration is drafting a ban on US imports of new models of Chinese data centre components, citing four people familiar with the matter. The move is aimed at protecting the infrastructure supporting the rapid growth of artificial intelligence, with the Federal Communications Commission (FCC) working on measures to bar imports of new Chinese optical transceivers. The proposed curbs could impact optical transceivers used in AI infrastructure, as these components enable data to travel over fibre-optic cables at the speed of light within data centres.
Maithan Alloys Limited acquired a 0.29% stake in Sterlite Technologies Limited on August 4, 2026, purchasing 1,483,256 equity shares for a total consideration of ₹91.24 crore. The acquisition was completed through the stock exchange for cash consideration, with Maithan Alloys stating it seeks investment benefits without intending to gain control. The transaction was disclosed to the National Stock Exchange of India Ltd., the Calcutta Stock Exchange Limited, and BSE Limited on August 5, 2026, following the triggering of the threshold limit. Maithan Alloys confirmed that the purchase is strictly for investment purposes, aiming to reap long-term and short-term financial benefits, with no intention to acquire direct or indirect control over the management of the target entity.
STL's core business is the manufacture of optical fibre and optical fibre cables, which are used to transmit internet data through pulses of light. The company is among the country's largest manufacturers of optical fibre and optical fibre cables and also has a significant presence in global markets, supplying telecom operators, governments and data centres. HFCL operates across telecom infrastructure development, system integration and the manufacture of telecom equipment, optical fibre and optical fibre cables. The move, which has not been previously reported, aims to prevent Chinese firms from stealing data, installing malware or disrupting services at US data centres that house the chips used to train and run AI models.
In an exchange filing on Tuesday, HFCL announced its board has approved a further expansion of optical fibre and optical fibre cable manufacturing capacities with a total capital outlay of around ₹400 crore. The expansion will be funded through an appropriate mix of internal accruals and debt, as required. The board has approved an additional capacity expansion of 4.60 million fkm per annum in optical fibre (OF) and 14.0 million fkm per annum in optical fibre cable (OFC) capacities. Upon completion of these expansion programmes, HFCL's total OF manufacturing capacity will increase to 38.50 million fkm per annum, while OFC manufacturing capacity will rise to 56.36 million fkm per annum. The proposed expansion is expected to be completed by July 2028 and is aimed at helping the company cater to rising demand for OFC and optical connectivity products across domestic and international markets.
According to Balaji Rao Mudili, Research Analyst at Bonanza, surging demand from AI-driven data centres, alongside three converging investment cycles -- fibre-to-the-home rollouts, data centre expansion, and 5G/6G build-outs -- has amplified the rally. The ban on new models of Chinese data centre devices is expected to impact China's Zhongji Innolight, one of the world's largest transceiver manufacturers, whose shares fell as much as 14 percent following the report. US-based transceiver makers also gained significantly, with Lumentum rising about 7 percent, Coherent gaining 11 percent and Applied Optoelectronics advancing 18 percent. Sterlite Technologies reported a turnover of ₹2,446 crore and PAT of ₹2 crore for FY26, with the company maintaining a substantial net worth of ₹1,526 crore as of March 31, 2026. The proposed curbs could increase costs for US cloud firms such as Amazon Web Services, as they may have to shift to alternative suppliers, including US-based Coherent and Lumentum.
