Meanwhile, the S&P BSE Sensex was down 405 points or 1.09% to 36,717.9.

The government is reportedly looking to shut operations at the state-owned trading firms, MMTC and State Trading Corporation of India, along with the unlisted Project and Equipment Corporation of India (PEC).

Trade minister Piyush Goyal on Tuesday was quoted by the media as saying that 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".

Slowly the original purpose of these public sector units have come to an end. It's not the business of the government to remain in such businesses. The government should not run companies only for gold imports. We have started the discussion and will close them down one by one. The companies have not covered themselves with glory, Goyal reportedly told the media.

MMTC is the leading international trading company in India. It continues as the canalized agency for export of iron ore, manganese ore & chrome ore. MMTC is also one of the three canalizing agencies for import of urea. Presently, MMTC is one of the nominated agencies for import of gold and silver.

State Trading Corporation of India (STC) has been in international trade for over six decades. The present business handled by STC can broadly be classified into three categories viz. (i) import of items like edible oils, pulses and fertilizers on behalf of the Government of India, (ii) business carried out on behalf of business associates on back-to-back basis and (iii) direct buying and selling in items like tea, soyabean seed, chana, etc.

Project & Equipment Corporation of India (PEC) was incorporated on 21 April 1971 as a subsidiary of State Trading Corporation of India (STC), to handle canalised business of the export of railway equipment, engineering equipment & turn key projects. In 1991, PEC became an independent company and later diversified into agro commodities, industrial raw material, manufactured goods and bullion.