There is a report in Times of India today that the Govt has decided to shut down the loss making State Trading Corp of India (STC) and Project and Equipment Corp of India while revamping MMTC.

The govt stake in both STC and MMT stands around 90%.

The report said that the decision was taken last month but we are yet to finalise a cabinet note.

With 200 out of the 500 govt run enterprises in losses, this should ideally be a welcome move but the market does not seem to think so as both the stocks, STC as well as MMTC have tanked - MMTC fell 16.4% to Rs.20.7 while STC dropped 19% to Rs.108.45.