NMDC Ltd shares fell over 4 per cent on Monday.
The company said it cut iron ore prices by up to 20 per cent.
Analysts said that the “price cut will put pressure on the company's margins as global prices are falling.” Spot iron ore prices are 72 per cent lower than their 2012 average, they added.
India's iron ore imports are up 71 per cent whereas domestic demand has grown a meagre 3 per cent over the last year, according to HSBC.
At 12.40 pm, the NMDC stock was trading down 4.22 per cent or Rs 5.65 at Rs 128.10 on the BSE.