State Trading Corporation zooms 20% for second straight day

On December 23, Smithblock Financial Services bought 400,000 shares at Rs 142.25 per share

State Trading Corporation of India is locked in upper circuit for the second straight day by rising 20% to Rs 172 on the National Stock Exchange (NSE) in an otherwise weak market.

The stock of state-owned company zoomed 44% in past two trading sessions on the back of heavy volumes. It is trading close to its 52-week high of Rs 174 touched on December 29, 2015 during intra-day trade.

The trading volumes on the counter surged over five-fold with a combined 2.39 million shares changing hands on the BSE and NSE till 10:05 am. There were pending buy orders for 645,788 shares on both the exchanges.

On Friday, December 23, 2016, Smithblock Financial Services Private Limited bought 400,000 shares of State Trading Corporation of India at Rs 142.25 per share on the NSE, the bulk deal data shows. LINK

The name of the sellers not immediately ascertained.

As of September 30, 2016, the promoters – central government & state governments – held 90% stake in the company. The remaining 10% stakes are with individual shareholders (6.17%), insurance companies (1.92%) and bodies corporate (1.77%). The company has a paid up equity capital of Rs 60 crore.

State Trading Corporation of India is an international trading company owned by Government of India. The company is involved in the export, import and domestic trading of a range of products, both agricultural and non-agricultural commodities. They exports food grain, castor oil, coffee, cashew and tea and imports bullion, vanaspati and edible oils, pulses, hydro-carbons, metals and minerals and fertilizers.