Shares of state-run mining company NMDC plunged over 5 per cent today, leading to an erosion of Rs 2,755 crore from its market valuation, after the company slashed iron ore prices by up to 20 per cent.
The scrip tumbled 5.20 per cent to settle at Rs 126.80 on the BSE. During the day, it fell by 5.71 per cent to Rs 126.10.
On the NSE, the stock plunged 5 per cent to close the day at Rs 126.75.
NMDC was the biggest loser among the 50-Nifty scrips.
Following the dip in the stock, the company's market valuation declined by Rs 2,755.4 crore to Rs 50,272.60 crore.
In terms of volume, 2.79 lakh shares of the company changed hands at the BSE and over 31 lakh shares were traded at the NSE during the day.
"Shares of NMDC tumbled as it reduced the prices of iron ore by 20 per cent for the next 10 days of the month," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
Coming under pressure from the domestic steel sector, NMDC had on Saturday slashed iron ore price by up to 20 per cent for the remaining days of the current month.
It reduced prices by Rs 200 per tonne for lumps or higher grade iron ore and by Rs 500 per tonne for fines to fix the prices at Rs 3,050 a tonne and Rs 1,960 a tonne respectively, the company had said in a regulatory filing.
NMDC said these prices will be effective from April 18 till the end of this month.
The company was under pressure after it kept the prices unchanged in April amid a huge fall in global prices.
In the overall market, the BSE benchmark Sensex today ended at 27,886.21, down 555.89 points.
