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Shipping stocks zoom up to 19%; SCI, GE Shipping hit record high. Check why

Shipping stocks rally today: hipping Corporation of India (SCI) share price soared 19.3 per cent to hit an all-time high of Rs 328.50 per share

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SI Reporter New Delhi

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Shipping Corporation, shipping stocks rally on July 11: Shipping stocks, including Shipping Corporation of India, Essar Shipping, and Sadhav, were buzzing in trade on Thursday, July 11, 2024.

Among individual shares, Shipping Corporation of India (SCI) share price soared 19.3 per cent to hit an all-time high of Rs 328.50 per share. Thus far in calendar year 2024, shares of Shipping Corporation have doubled investors' wealth with a surge of 101 per cent (including today's gain). By comparison, the BSE Sensex has gained over 10 per cent year-to-date.

Share price of Sadhav, a SME shipping company, rallied 18.9 per cent to an intraday high of Rs 262. Essar Shipping, meanwhile, were locked in the 10 per cent upper circuit at Rs 56.35 per share.

GE Shipping (Great Eastern Shipping Company) advanced 13 per cent (Rs 1,538; record high), Shreyas Shipping 18.6 per cent (Rs 398.75), and SEAMEC 7.4 per cent (Rs 1,548.95; record high). By comparison, the benchmark BSE Sensex was down 299 points at 79,626 levels at 11:05 AM.

The rally in share prices of shipping companies comes amid various news flow around the sector. First, a TV channel has reported that the government is considering major proposals for the shipping sector in the upcoming Union Budget 2024.

According to the report, the Modi government may propose a Maritime Development Fund in the 2024 budget. Besides, a 'Harit Nauka' scheme could also see the light of the day.

"The Maritime Development Fund may get an allocation of Rs 15,000 crore to Rs 20,000 crore, while the Harit Nauka scheme may see incentives for ships which run via Hydrogen," the report said.

Given this, shipbuilding stocks were also ruling higher. Till the time of writing of this report, Mazagon Dock Shipbuilders was up 2.5 per cent, Garden Reach Shipbuilders 5 per cent, Cochin Shipyard 4 per cent, and Garware Marine Industries 5 per cent (upper circuit).

The union budget is slated to be presented on July 23, 2024.

Meanwhile, another business daily reported that the Union Ministry of Shipping has proposed a joint venture between Shipping Corporation of India (SCI) and a public sector oil marketing company, likely Indian Oil Corporation (IOCL), for manufacturing very large oil tankers.

"The move is line with the government's 'Atmanirbhar Bharat' agenda that aims to develop India's manufacturing sector. It will also ensure energy security as indigenous very large crude containers (VLCCs) or oil tankers would allow India to lower its dependence on foreign ships and insurance entities while reducing the risk of sanctions in war-like situations from impacting operations," the report said.

Separately, a third report said that the finance ministry's Department of Investment and Public Asset Management is at an "advanced stage" to push through the strategic sale of Shipping Corporation of India (SCI).

According to the report, the finance ministry wing is awaiting a nod from the Prime Minister's Office (PMO) to invite bids for SCI. The government, as per the report, hopes to complete the divestment within this year.

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First Published: Jul 11 2024 | 11:32 AM IST

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