Over the past 5 days, the stock declined by ₹16.86 or 7.26%, trading at ₹215.30. In the past month, it dropped by ₹5.92 or 2.68%. Over 6 months, the stock witnessed a significant decline of ₹46.80, reflecting a 17.86% decrease. However, year-to-date, the stock has gained ₹3.85, marking a 1.82% rise. Over the past year, it increased by ₹21.70, or 11.21%, and in the last 5 years, NMDC Ltd’s stock has delivered substantial returns of ₹90.95, representing a 73.14% growth.
NMDC share price and other steel companies faced selling pressure on December 18 as the Karnataka government proposed a bill to tax mines and mining land. The NMDC stock saw the sharpest decline. Over the past five days, NMDC Ltd’s share price has dropped by 7.26%, losing ₹16.86 to trade at ₹215.30.
Karnataka plays a significant role in NMDC’s operations, contributing around 35% to the company’s overall output. Before this month, the state cabinet approved the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, allowing the government to levy taxes on mineral rights and land.
The Supreme Court had previously permitted states to collect mining taxes retrospectively from 2005. The new bill is expected to generate ₹4,207.95 crore annually, with an additional ₹505.9 crore from taxes on mineral-bearing land. The proposed tax ranges from ₹20 to ₹100 per tonne, depending on the mineral. The increased cost of iron ore is likely to affect steelmakers, with JSW Steel shares down 2% and SAIL shares slipping 1.74% on the same day.
NMDC is a leading company involved in the exploration and production of iron ore and diamonds, along with the production and sale of sponge iron and wind power generation. Established in 1958, it operates under the administrative control of the Ministry of Steel. Recognised as a Navratna company, NMDC is known for its strong operational and financial performance, making it one of the most profitable companies in this category.
NMDC share price opened at ₹212.30 on December 19, 2024, reached a high of ₹215.55 and a low of ₹209.71, currently trading at ₹214.29, up 0.31% as of 11:21 AM.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 19, 2024, 11:35 AM IST
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