NMDC share price locked at 4% upper circuit to hit 52-week high-mark: What drove the rally?
NMDC Share Price Today: Shares of public-sector undertaking (PSU) NMDC were locked in at over four per cent upper circuit at ₹204.90 apiece to hit its 52-week high mark on Tuesday, December 26. The shares of the iron ore company rallied earlier today after iron ore futures hit an 18-year mark. Iron ore rallied to its highest since June 2022, showing Beijing’s efforts to stem the property market’s decline in recent months may be paying dividends.
Futures in Singapore rose above $140 a ton amid thin trading on Tuesday. Iron ore climbed 1.5 per cent to $140.55 a ton in Singapore, as per news agency Bloomberg. Futures in Dalian were 1.3 per cent higher, while steel rebar and hot-rolled coil both advanced in Shanghai.
Optimism is building that China’s economic recovery and its steel-intensive property sector are finally gaining momentum, after a subdued post-pandemic reopening in the past year disappointed investors, according to Bloomberg. On Thursday, China’s biggest state-owned banks launched this year’s third round of rate cuts as authorities boost efforts to lift economic activity. The salvo comes after Beijing in November announced a $127 billion plan to boost urban revitalization, providing relief for the steel-intensive property sector amid a wave of developer defaults.
On Tuesday, shares of NMDC opened at ₹196.20 and gained 4.43 per cent to hit a 52-week high of ₹ ₹204.90, against a previous close of ₹195.30 apiece on the BSE. Shares settled 3.30 per cent higher at ₹201.75 apiece on the BSE. MORE TO COMEMilestone Alert!
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