NMDC falls after sources say auction price may be at a discount

Shares fall fell 1.8% in early trade

Shares in state-run miner NMDC Ltd fell 1.8% in early trade after sources said the government may on Tuesday announce a floor price for the NMDC issue in a range of Rs 145 to Rs 150 a share.

Dealers say in the short term, the stock may fall, chasing the likely price band which is below Monday's close of Rs 154.75.

India has set a share sale in state miner NMDC Ltd for Wednesday, the company said, in a deal which sources said could add up to $1.1 billion to government efforts to ease its yawning budget deficit.