NMDC Steel Continues To Rally For 4th Straight Day, Trades At Record High – News18

Shares of National Mineral Development Corporation (NMDC) Steel Limited maintained its gaining streak for the fourth straight day in intraday trade on Wednesday. The metal stock surged more than 2% to hit a fresh 52-week high of Rs 54.46 on BSE.

Shares of NMDC also maintained its 52-week high levels for the third straight day on Wednesday. Earlier, the stock touched record high levels of Rs 53.71 per share on BSE on Tuesday and Rs 53.05 on Monday.

The low-cost iron ore producer’s shares were listed on the stock exchanges on February 20 at Rs 37.75 per share. NMDC Steel shares have surged nearly 45% from its listing price.

Shares of the company have gained more than 16% in the past one week and 20% in one month. The stock has surged over 41% in the last three months.

Significantly, LIC has also invested heavily in NMDC Steel. The shareholding of LIC in the state-run iron ore mining company, NMDC Steel now stands at 14.16%.

NMDC Steel Ltd was formed after the demerger from the mining giant NMDC in October last year. The government holding in NMDC steel is 60%.

Market experts believe that the reduction in the one-year loan prime rate by China’s Central Bank is one of the reasons for the recent surges in the stock price of the Public Sector Undertaking (PSU) companies. The People’s Bank Of China has cut down the loan rate by 10 basis points to 3.45% from 3.55%.

Another reason can be the increased production by the company. MD of NMDC Steel had previously laid out their target for the year which might have boosted the confidence of the investors for better returns. According to reports, the company has set a target of producing 10 lakh tonnes of steel in the first six months of the current financial year.

Shares of NMDC Steel Ltd were trading at Rs 53.92 apiece, up 1.24%, on BSE at 2:52 PM.