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NMDC gains as Barclays upgrade offsets auction price concerns
11 Dec 2012, 02:56 PM IST
Shares in state-run miner NMDC gained 2.9 per cent, recovering from an earlier fall of 2.7 per cent, 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 Rs 210 from Rs 173.
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.
Copyright Thomson Reuters 2012
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