KIOCL, NMDC Share Prices Rise After Steel Ministry Suggests Merger
Most steel stocks were trading higher on Tuesday with Shyam Metalics and Energy Ltd. leading the gains.
KIOCL Ltd. and NMDC Ltd. share prices rose during early trade as a news report said that the Government of India is mulling a merger between the two companies. Mining company NMDC is planning to export iron ore pellets after merger with the KIOCL Ltd, Reuters reported.
KIOCL, formerly knows as Kudremukh Iron Ore Company, has a high-grade pelletisation plant and a blast furnace in Mangaluru. It's a flagship company under the Ministry of Steel with four decades of experience in operating in iron ore mining, beneficiation, and iron pelletisation in India, according to the official website.
KIOCL Ltd. shares rose 4.02% to Rs 446.40 apiece. However, it erased all gains to trade 2.59% down at Rs 418.05 apiece as of 9:51 a.m., as compared to 0.23% advance in the NSE Nifty 50 index.
NMDC Ltd. share price rose 0.85% to Rs 65.45 apiece, the highest level since Jan 6. It was trading 0.08% higher at Rs 64.95 apiece as of 9:52 a.m., as compared to 0.34% advance in the NSE Nifty 50 index.
On bourses, most metal companies' stocks were trading higher with Shyam Metalics and Energy Ltd. leading the gains. Steel Authority of India Ltd. and Jai Balaji Industries Ltd. shares were following the lead.
KIOCL Ltd. gave up early gains to become the top loser. Jindal Stainless, and NMDC Ltd. were the second and third top loser.
The market-cap of steel companies rose Rs 4,114.7 crore to Rs 6.54 lakh crore as of 9:57 a.m.
