MMTC, STC stocks tank up to 19% on reports of shutdown

Shares of State Trading Corporation (STC) and Metals & Miners Trading Corporation of India (MMTC) plunged up to 19 percent on Tuesday on reports that the Commerce Ministry may shut down the firms.

STC fell as much as 19 percent to Rs 108.45, while MMTC tanked 16 percent to Rs 20.70 per share. At 12:50 PM, STC was trading 17 percent lower at Rs 110.65, while, MMTC was 15 percent lower at Rs 21. In comparison, the BSE Sensex fell 0.9 percent or 328 points to 36,794.

According to Mint, trade minister Piyush Goyal on Tuesday said the government will shut down state-owned trading companies such as State Trading Corporation (STC), Project and Equipment Corporation (PEC) and MMTC one by one as "the government has no business of remaining in such businesses".

The department of commerce may soon approach the cabinet with the proposal, The Economic Times reported. The government owns a 90 percent stake in both firms.

It was also agreed upon that the ministry will prepare a comprehensive note for the Cabinet for the closure of both STC and PEC within a definite time frame, given their precarious financial position, another report by Press Trust of India said.