 "MMTC, MSTC shares soar upto 14%; here's why they outran Sensex, Nifty today")
MMTC, MSTC shares, stock market today: Shares of government-owned MMTC and MSTC were outperforming the stock markets today, January 8, 2025. While MMTC share price jumped 13.8 per cent (Rs 80.70) on the BSE, MSTC share price rallied 9.8 per cent (Rs 725) in the intraday trade.
At 1:40 PM, however, MMTC share price was trading around 7.6 per cent higher at Rs 76.31 per share, and MSTC share price was quoting 4.5 per cent higher at Rs 691.65 per share. Around 42.94 million shares have changed hands on the MMTC counter, combined, on the BSE and NSE, while 0.96 million shares have changed hands on the MSTC counter. By comparison, the Sensex today was trading lower, down by 0.5 per cent at the time of writing this report.
MSTC, MMTC share news
The up move in MMTC and MSTC share prices came after a report said the government was considering announcing new proposals to promote the Vehicle Scrappage Policy.
As reported by TV channel ET Now, the government could announce new norms to push Vehicle Scrappage and expand scrappage centres in India.
Under the norms, Centre may make the re-registration process of vehicles, that are 10-15 years-old, costlier.
“Besides, automobile companies may be encouraged to use scrapped raw material to manufacture new vehicles. Vehicle owners, meanwhile, could get ‘Tradeable Certificates’ in addition to tax benefits for scrapping old vehicles,” the report said.
That said, Business Standard could not independently verify the report.
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MSTC is a ‘Mini Ratna’ Central Public Sector Enterprise (CPSE), owned and controlled by the Ministry of Steel, Government of India.
MSTC was, originally, incorporated to engage in the export of ferrous scrap. While it By diversified itself into conducting auctions and tenders for industrial scrap and surplus materials for its government clients in early 1990s, it later entered the recycling business through a joint venture with Mahindra Accelo Limited and established the country’s first Registered Vehicle Scrapping Facility, as per its website.
MMTC, meanwhile, is a government-owned trading company that imports and exports a variety of goods and services such as minerals, metals, gems, jewellery, fertilizers, agro products, coal, and hydrocarbons.
It also trades in engineering items, chemicals, electrical and electronics items, bullion, and steel products.
At the end of the September quarter, Government of India held 65.75 per cent stake in MSTC. Among public shareholders, Mutual Funds held 0.5 per cent stake, Insurance Companies 1.1 per cent, and FPIs 5.9 per cent.
As for MMTC, Government of India held 89.9 per cent stake at the end of the December quarter. Among public MMTC shareholders, FIIs held 0.11 per cent stake, and LIC held 1.66 per cent stake.