NMDC stock tumbles nearly 14% as it goes ex-dividend

Shares of iron ore miner NMDC slumped nearly 14 per cent, wiping-out Rs 5,035 crore from its market valuation, amid massive selling by investors as the stock went ex-dividend today.
The stock tanked 13.63 per cent to settle at Rs 80.50 on BSE. During the day, it tumbled 14.10 per cent to Rs 80.05.
On NSE, shares of the company plunged 13.68 per cent to end at Rs 80.45.
Consequently, the company's market valuation eroded by Rs 5,035 crore to Rs 31,915.96 crore.
In terms of volume, 14.96 lakh shares of the company changed hands at BSE and over one crore shares were traded at NSE during the day.

Experts said that profit-booking pulled down the stock.

"Shares of NMDC tumbled by more than 14 per cent intra-day after the stock went ex-dividend today," said Achin Goel, Head: Wealth Management & Financial Planning, Bonanza Portfolio Ltd.
NMDC had informed BSE earlier this month that the company has fixed February 25, 2016 as the record date for the purpose of payment of first interim dividend for the financial year 2015-16.
Board of Directors of the company at a meeting held on February 12, declared first interim dividend at the rate of Rs 9.50 per equity share for the financial year 2015-16.

State-run iron ore miner NMDC had posted 58.8 per cent decline in standalone net profit at Rs 655.04 crore for the quarter ended December 31, 2015, due to fall in iron ore prices.
The company had reported a net profit of Rs 1,593.01 crore in the year-ago period.