Editor’s Note
This article highlights a positive trading session driven by banking and IT stocks, with specific focus on the performance of state-owned mining company NMDC Ltd. It reflects broader bullish sentiment following a recent rate cut.
The stock market saw gains in banking and IT stocks on Thursday, influenced by the rate cut. The Nifty closed above the 25,400 level. Bullish sentiments are currently visible in the market.
Shares of the public sector undertaking (PSU) stock in the mining sector, NMDC Ltd, gained on Thursday. NMDC Limited’s share price rose by 1.70% and closed at the level of 77.00 rupees. This government-owned company has a market capitalization of 67.54 thousand crore rupees.
There has been no significant movement in NMDC’s stock over the past year, and its share price has an annual return of 9%. Its price-to-earnings ratio stands at 10.35. Being a PSU stock, its dividend yield remains high, and it pays its investors a dividend yield of 4.29%.
After several months of sluggishness, signs of a rise have emerged in NMDC’s share price. Following Thursday’s price action, this PSU stock is showing signs of a range breakout. The momentum indicator RSI is at 66, indicating that life is returning to the stock. Further buying could emerge. Looking at NMDC’s daily chart, it can be held long by maintaining a stop loss at 72.50 rupees. Targets up to 88 rupees can be seen.
NMDC Limited is primarily engaged in the business of exploration, production, and export of minerals and mineral resources. It is India’s largest iron ore producer and is considered one of the low-cost producers globally. The company is also expanding into steel production.
The company is India’s only organized diamond producer and operates the only mechanized diamond mine in Panna, Madhya Pradesh. The company is in the business of diamond exploration, excavation, and sale.
The Government of India holds a 60.80% stake in NMDC Ltd. Looking at the company’s latest shareholding pattern, Foreign Institutional Investors (FIIs) increased their stake to 12.20% in the quarter ending June 2025. Domestic Institutional Investors (DIIs) hold a 14.50% stake.
A major part of the company’s operations is in the iron ore mining sector. This is the company’s core business. The company produces over 45 million tonnes of iron ore annually.
