FII Stake Increases: PSU Mining Stock Jumps 5% As Iron Ore Production Rises 20% In May

On Tuesday, Indian equity benchmarks traded lower in the morning session, with the benchmark Nifty 50 index declining 0.37 per cent to 23,295.45. Metal and mining stocks remained in focus following monthly operational updates. In this segment, NMDC's share price traded at Rs 96.86 on June 2, 2026, up 4.60 per cent from the previous close, after the company reported higher iron ore production for May 2026 and the first two months of FY27.

NMDC Reports Higher Iron Ore Production

NMDC reported total iron ore production of 5.31 million tonnes (MT) in May 2026, compared with 4.43 MT in the corresponding month last year, registering a growth of nearly 20 per cent year-on-year.

Iron ore sales during the month stood at 4.04 MT, compared with 4.34 MT recorded in May 2025. For the April-May period of FY27, cumulative production increased to 9.96 MT from 8.43 MT in the corresponding period of FY26. Cumulative sales stood at 7.72 MT, compared with 7.94 MT reported a year earlier.

NMDC Chhattisgarh Drives Growth

NMDC's Chhattisgarh operations remained the primary growth driver during the month.

Production from Chhattisgarh increased to 3.99 MT in May 2026 from 3.06 MT in the year-ago period, while sales rose to 3.34 MT from 3.00 MT.

For the cumulative April-May period, production in Chhattisgarh increased to 7.66 MT from 5.91 MT, while sales rose to 6.50 MT compared with 5.78 MT reported during the corresponding period of FY26.

Karnataka Sales Decline

Operations in Karnataka witnessed weaker dispatches during the month.

Production stood at 1.32 MT in May 2026 compared with 1.37 MT a year ago, while sales declined to 0.70 MT from 1.34 MT.

For the first two months of FY27, Karnataka production stood at 2.30 MT, compared with 2.52 MT in the year-ago period. Sales declined to 1.22 MT from 2.16 MT.

FY27 Begins On Strong Production Note

The provisional operational data indicate that NMDC has started FY27 with higher production levels, supported by stronger output from its flagship mining operations in Chhattisgarh. While overall sales remained broadly stable, regional dispatch trends were mixed, with growth in central India partly offset by lower volumes from Karnataka.

About NMDC

NMDC Ltd is India's largest iron ore producer and a Navratna public sector enterprise under the Ministry of Steel. The company operates major iron ore mines in Chhattisgarh and Karnataka and supplies raw materials to the domestic steel industry. In addition to mining operations, NMDC is expanding its presence across steel and mineral value-chain businesses. FII holding rose to 13.6 per cent from 13.48 per cent.

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Disclaimer: The article is for informational purposes only and not investment advice.