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NMDC gains as Barclays upgrade offsets auction price concerns

Source : REUTERS
Last Updated: Tue, Dec 11, 2012 08:57 hrs
A broker watches a TV news channel as another monitors share prices at a brokerage firm in Mumbai

Shares in Indian state-run miner NMDC Ltd gain 2.9 percent, recovering from an earlier fall of 2.7 percent, with Barclays' upgrade of the stock offsetting concerns over the auction floor price for the company's share issue.

Barclays raised NMDC to 'overweight' from 'underweight' late on Monday, citing favourable pricing dynamics in domestic iron ore markets.

The investment bank also raised its 12-month price target on NMDC to 210 rupees from 173 rupees.

Barclays said the falling domestic output of iron ore because of caps and restrictions in some Indian states could increase imports of the commodity, bringing domestic prices in line with seaborne prices.

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