New Delhi, March 11 -- Continuing their bearish trend for the second consecutive trading session, shares of NMDC, India's largest iron ore producer, fell another 3.5% in today's intraday trade on March 11, to Rs.63.71 apiece. This decline came after domestic brokerage firm Kotak Institutional Equities cut its target price on the stock to Rs.55 apiece from the earlier target of Rs.66, while maintaining its 'Sell' call.

The cut in target price follows a decline in iron ore prices, driven by an increasing market surplus for seaborne iron ore and rising supply pressure in India with the ramp-up of merchant iron ore mines, directly competing with NMDC's Chhattisgarh mines.

The brokerage expects seaborne iron ore prices to remain subdued over...