NMDC rebounds on brokerage upgrade

Barclays raises price target to Rs 210 from Rs 159

NMDC shares have rebounded from the day lows and are currently trading higher by 5% at Rs 163 after Barclays upgraded the company from underweight to overweight. and raised the price target  to Rs 210 from Rs 158.70.

The global brokerage firm is of the opinion that the iron ore industry is likely to undergo a paradigm shift and the country will become a net importer (currently net exporter) and domestic prices would move towards import parity. The global brokerage firm expects Indian iron ore price discounts to international prices to narrow, benefiting NMDC.

Nearly 5 lakh shares changed hands on the BSE as compared to an average of 86,000 shares over the past two weeks.