Shipping stocks skyrocket 20%, Shipping Corporation, Eastern Shipping lead

Shares of shipping companies rallied up to 20% in today’s trading session on BSE ahead of the expectations of positive developments by the government in the upcoming Union Budget.

Shares of Shipping Corporation of India witnessed the highest surge of nearly 20% to rise to its new all-time high of Rs 328.90 on BSE today and was followed by Great Eastern Shipping Company, whose shares also made a new 52-week high of Rs 1,542.80 after jumping over 13%.

Essar Shipping shares also witnessed a jump of 10% in today’s session, while the shares of Garden Reach Shipbuilders and Cochin Shipyard gained 5% each on BSE.


Mazagon Dock Shipbuilders’ shares also jumped 4.5% to day’s high of Rs 5,599.95 on BSE.

The rally in the sector is attributed to various reasons, the primary reason being an anticipation of the government’s proposal for the creation of a Maritime Development Fund, namely Harit Nauka scheme, in the Union Budget.

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As per reports, Maritime Development Fund is likely to get an allocation of Rs 15,000 crore to Rs 20,000 crore. Shipbuilders are reacting to these developments as reports suggest that through the Maritime Development Fund, they can avail long-term loans at a lower cost.

Shipping companies like Mazagon Dock, Cochin Shipyard, Great Eastern Shipping Company among others have given multibagger returns to its investors in the last one year and can still be seen growing at a fast pace.

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