Since the past four days, the stock price of NMDC was on the decline after the Karnataka government withdrew the approval accorded to extend the mining lease period of NMDC at Donimalai and auction the said block.
Following this, the company said filed revision application against the State Government of Karnataka's said order with the Ministry of Mines and the hearing was fixed for yesterday. And that worked in favour of the company as the mines tribunal put a stay order on the state Govt’s withdrawal order.
The said Stay Order would prohibit Government of Karnataka to take any further action regarding mining lease or initiate auction process of Donimalai mine.
The market is happy with this development and the stock price first opened higher at Rs.89.15, up almost 3.5%. But this was not sustained and the price soon slipped to a new low at Rs.82.20; it continues to remain in the red.