Shares of MMTC Ltd and State Trading Corp Ltd experienced significant surges in response to news reported by CNBC-TV18, suggesting that the government might shut down these companies. MMTC saw a rally of over 7%, while STC surged by more than 15%, though both stocks later retraced some gains. Both companies have shown remarkable performance throughout the year, with MMTC witnessing a surge of over 130%, and STC showing an increase of more than 80%.
The surge in these stocks followed reports that Union Commerce Minister Piyush Goyal is scheduled to lead a high-level meeting on October 23 to discuss the potential closure of three state-run entities, including MMTC, STC, and PEC. Currently, the government holds approximately 90% stake in MMTC and STC, with PEC’s details not publicly available. Analysts have pointed out that the core purpose of these public sector units has become obsolete, leading to discussions about the government’s involvement in such businesses.
As of 2:25 pm, MMTC shares were trading at ₹86.30, reflecting a 3.73% increase, while STC was trading at ₹165.50, marking an impressive 7.50% surge. Investors closely watched these developments, impacting market dynamics amidst the possibility of significant changes in the government’s stance on these entities.
