Shares of shipping companies such as Shipping Corporation of India, Shreyas Shipping, and shipbuilders like Mazagon Dock, Cochin Shipyard, and Garden Reach Shipbuilders experienced significant surges on Thursday. This upward movement, ranging from 5% to 18%, was driven by anticipation of positive announcements in the upcoming Union Budget.
Reports indicate that the Union Budget, set to be announced on July 23, might include the introduction of a Maritime Development Fund and the Harit Nauka scheme.
The Maritime Development Fund is expected to receive an allocation between Rs 15,000 crore to Rs 20,000 crore. This fund aims to support the shipbuilding industry by providing long-term loans at lower interest rates, which is likely to drive growth and development within the sector.
The Harit Nauka scheme is another key development, focusing on incentivizing ships powered by hydrogen. Cochin Shipyard, which constructed the hydrogen ship for the pilot project, stands to benefit significantly from this initiative.
Shipping Corporation of India (SCI): SCI shares hit the upper circuit limit of 20%, marking a fresh 52-week high.
Shreyas Shipping: Shares of Shreyas Shipping saw a 14% increase, reflecting positive market sentiment.
Mazagon Dock: After experiencing a three-day decline, Mazagon Dock shares rebounded with a 2.12% gain, trading at Rs 5,471.50.
Cochin Shipyard: The company, pivotal in the hydrogen ship project, saw its shares rise by 4.10% to Rs 2,840.
Garden Reach Shipbuilders: Shares of Garden Reach Shipbuilders also climbed by 4.5% to Rs 2,580, doubling in value over the past month.
The anticipation of significant announcements in the Union Budget has led to a notable surge in the shares of shipping companies and shipbuilders. The expected introduction of the Maritime Development Fund and the Harit Nauka scheme are seen as major catalysts for this positive market movement. Investors are closely watching these developments, which could herald a new era of growth and innovation in India’s maritime industry.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
Published on: Jul 11, 2024, 4:23 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
