Shares of NMDC were witnessing selling pressure in weak market and fell as much as 5.71 per cent in intraday trade after the company slashed iron ore price by up to 20 per cent for the remaining days of the current month.

The stock ended day at Rs 126.8, down 5.2 per cent or Rs 6.95.

The company reduced prices by Rs 200 per tonne for lumps or higher grade iron ore and by Rs 500 per tonne in fines to fix the prices at Rs 3,050 a tonne for lump ore and Rs 1,960 a tonne for fines, the company said in regulatory filing.

The company was under pressure after it kept the prices unchanged in April amid a huge fall in global prices. Recently, industry body Assocham urged the centre to reduce the prices to help domestic steel industry become competitive.

The company have been reducing iron-ore prices since February, but kept the April prices unchanged.

In March, the company had fixed the price of iron ore at Rs 3,250 a tonne for lump and Rs 2,460 a tonne for fines.