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NMDC shares plunge over 5 per cent on iron ore price cut

Price cut will put pressure on the company's margins as global prices are falling, analysts said.

Indulal PM   Mumbai     Last Updated: April 20, 2015  | 20:31 IST
NMDC shares plunge over 5% on iron ore price cut
Price cut will put pressure on the company's margins as global prices are falling, analysts said.

NMDC Ltd shares fell over 5 per cent on Monday after the company said it cut iron ore prices by up to 20 per cent.

Price cut will put pressure on the company's margins as global prices are falling, analysts said.

Spot iron ore prices are 72 per cent lower than their 2012 average, analysts further said.

Country's iron ore imports are up 71 per cent whereas domestic demand has grown a meagre 3 per cent over the last year, HSBC said.

Shares of NMDC ended at Rs 126.80 on the BSE , down 5.20 per cent from the previous close.

(Reuters)

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