MSTC share price zooms 17% as Cabinet clears vehicle scrappage scheme

MSTC Ltd auctions ferrous and non-ferrous scrap, end-of-life vehicles and surplus assets for government departments, defence establishments and public sector undertakings.

MSTC share price today: MSTC Ltd shares defied the broader market weakness on Thursday, surging 17 per cent in intraday trade after the Union Cabinet cleared the vehicle scrappage incentive scheme. 

 

The stock opened at ₹449 on the National Stock Exchange (NSE) and rallied to an intraday high of ₹523.75.

 

As of 1 PM, MSTC shares were seen significantly outperforming the broader markets. The stock was trading 15 per cent higher at ₹512.50. In comparison, the Nifty 50 index was largely flat with a negative bias.

 

Today's rally was also accompanied by a sharp surge in volume. According to NSE data, nearly 9 million shares had changed hands, compared with a total traded volume of just 1,64,283 shares in the previous session.

 

 

Earlier on Wednesday, the Union Cabinet's approval of a scheme for replacement of old trucks and buses in Delhi-NCR area. The scheme, aimed at reducing air pollution in Delhi-NCR and promoting cleaner mobility, will incentivise owners of trucks and buses registered in the region that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles or electric vehicles (EVs).

 

The move is expected to boost vehicle scrappage and increase demand for organised recycling services.

 

The scheme is expected to benefit around 2.07 lakh vehicle owners across Delhi, Haryana, Rajasthan and Uttar Pradesh. This includes about 1.91 lakh trucks and 16,329 buses.

 

The outlay for the scheme is ₹9,585 crore, including ₹5,041 crore from the Central government and an estimated ₹1,601 crore in tax concessions from the states.

 

MSTC Ltd, a Miniratna Category - I PSU under the administrative control of Ministry of Steel, auctions ferrous and non-ferrous scrap, end-of-life vehicles and surplus assets for government departments, defence establishments and public sector undertakings.