NMDC firms up on completing the execution of mining lease agreements

NMDC rose 1.22% to Rs 124.70 after the company said it completed the execution of mining lease agreements of four mines in Chhattisgarh.

The Chhattisgarh government had extended the four mining leases in Bailadila, District -South Bastar, Dantewada, Chhattisgarh to NMDC for a further period of 20 years.

The leases of Bailadila Deposit No. 5, Bailadila Deposit No. 10, Bailadila Deposit No. 14 and Bailadila Deposit No. 14 NMZ have been extended upto September 2035. The disclosure was made after market hours yesterday, 13 January 2020.

Shares of NMDC advanced 3.31% in three trading sessions from its closing low of Rs 120.70 on 9 January 2020.

In the past one month, NMDC jumped 8.57%, underperforming the Nifty Metal index's 10.61% rise in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 58.098. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at Rs 113.68 and its 200-day moving average (DMA) placed at Rs 104.11, both of which would serve as a support levels in the near term.

NMDC's consolidated net profit rose 9.4% to Rs 691.94 crore on 8% decline in net sales to Rs 2,241.76 crore in Q2 September 2019 over Q2 September 2018.

NMDC is engaged in mining of iron ore. The firm's segments include iron ore, and other minerals & services. It is also engaged in the production and sale of diamond, sponge iron and wind power.

As of 31 December 2019, the Government of India holds 72.38% stake in the company.

Powered by Capital Market - Live News