Shipping stocks show buoyancy ahead of potential budget announcements 

The Indian shipping sector is riding a wave of investor optimism, with key players like Shipping Corporation of India (SCI), Shreyas Shipping, and leading shipbuilders Mazgaon Dock, Cochin Shipyard, and Garden Reach Shipbuilders experiencing significant share price increases. This surge, ranging from 5% to 19%, comes in anticipation of favorable developments in the upcoming Union Budget on July 23. 

On Friday, shipping stocks continued their impressive rally for the second consecutive session. SCI led the charge with a 16.40% increase, reaching a record high of ₹384.20 per share. The previous trading day saw SCI hitting the 20% upper circuit limit on positive expectations. Over the past three sessions, SCI’s stock has gained 40% and has surged 113% year-to-date.  

Despite India holding less than 1% of the global shipbuilding market dominated by China, South Korea, and Japan and having never produced an oil tanker, the sector’s prospects appear bright. Expectations are high for the Union Budget to announce a Maritime Development Fund and the Harit Nauka scheme.  

The Maritime Development Fund is anticipated to receive an allocation between ₹15,000 crore and ₹20,000 crore. This fund aims to provide long-term loans at lower costs to shipbuilders, which is fueling investor optimism. Additionally, the Harit Nauka scheme, set to incentivize hydrogen-powered ships, has placed Cochin Shipyard in the spotlight, given its success in building a hydrogen-powered ship for a pilot project.  

On Friday, SCI shares traded with a 16% gain at ₹320, while Shreyas Shipping saw a 14% increase. Shipbuilder stocks, rebounding after a three-day dip, also posted gains: Mazagaon Dock rose 2.5% to ₹5,495, Cochin Shipyard climbed 4% to ₹2,837, and Garden Reach advanced 4.5% to ₹2,580, doubling in value over the past month.  

In the SME segment, Sadhav Shipping’s share price rallied 18.9% to an intraday high of ₹262, while Essar Shipping hit the 10% upper circuit at ₹56.35 per share.