Shares of NMDC Ltd. recovered from day's low on Tuesday after the state-run company announced a hike in iron ore prices by Rs 400 per tonne.
NMDC raised the prices of lump ores to Rs 5,750 per tonne and fines to Rs 5,010 per tonne, according to an exchange filing. The new rates will come into effect from Oct. 1, it noted.
Since July, the rate of lump ores and fines stood at Rs 5,350 per tonne and Rs 4,610 per tonne, respectively.
The fresh revision brings iron ore prices to nearly the same level as they stood at the start of this fiscal.
The rate hike was announced a day after NMDC shares rallied around 5% in the backdrop of optimism seen in the Chinese real estate market.
China, which is among the top iron ore importers globally, unveiled key measures over the weekend to revive its struggling real estate market. Major cities, including Shanghai, Shenzhen, and Guangzhou, relaxed home-buying restrictions, while the central bank announced it would allow the refinancing of mortgages.
NMDC Share Price
Shares of NMDC had fallen 2.25% during early trade, they pared loss to trade 0.33% lower at Rs 244.09 per share on the NSE at 2:36 p.m., compared to a 0.16% decline in the benchmark Nifty 50.
The stock has risen 16.5% year-to-date, and 64.8% over the past 12 months. The relative strength index stood at 69.5.
Of the 22 analysts tracking the company, 11 have a 'buy' rating on the stock, three suggest a 'hold' and eight recommend a 'sell', as per Bloomberg data. The average 12-month analysts' price targets implies a potential downside of 4.2%.
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