New Delhi, April 9 -- A price hike has lifted NMDC Ltd stock, but the bigger story may lie elsewhere.

Shares have surged about 8% this week after the miner raised iron-ore prices effective 5 April. Prices of lumps and fines were hiked by Rs.500/tonne and Rs.450/tonne to Rs.5,300 and Rs.4,500, respectively, barely a month after increases Rs.100 and Rs.50 implemented on 6 March.

Markets cheered the move, interpreting it as a signal that pricing power may be returning to the ferrous cycle amid strong domestic steel demand and firm global prices.

Morgan Stanley also flagged restocking activity amid rising prices. Seaborne iron-ore prices have risen about 8% since the end of February, partly aided by the West Asia war.

Interestingly, broke...