1 week ago
HomeMarket NewsThese triggers are powering India's shipping stocks GRSE, SCI on Monday
In a notification issued last week, the Ministry of Finance granted "infrastructure status" to large ships, a long-standing demand of India's shipping industry. The announcement was already made during Finance Minister Nirmala Sitharaman's budget on February 1 this year.
India's shipping companies, Shipping Corporation of India Ltd. (SCI), Garden Reach Shipbuilders Ltd. (GRSE), Cochin Shipyard Ltd. have gained up to 5% on Monday, based on multiple triggers for the industry, as well as for specific stocks.
In a notification issued last week, the Ministry of Finance granted "infrastructure status" to large ships, a long-standing demand of India's shipping industry. The announcement was already made during Finance Minister Nirmala Sitharaman's budget on February 1 this year.
Large ships will now be included in the master list of infrastructure sub-sectors within the category of transport and logistics.
Indian-owned and flagged commercial ships having a gross tonnage of 10,000 and above or Indian built, owned ad flagged commercial ships of 1,500 gross tonnage or more will be under the infrastructure status.
Garden Reach shares have surged after the company announced on Friday that it has signed a contract with Germany's M/s Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG in Hamburg, Germany for the construction of four Hybrid Multi Purpose Vessels for a total value of $62.44 million.
The company has also signed multiple MoUs with strategic partners in the shipbuilding, port and infrastructure sectors. The MoUs were signed with the Deendayal Pot Authority, Syama Prasad Mookerjee Port Authority, Indian Port Rail & Ropeway Corporation Ltd., The Shipping Corporation of India, and Modest Infrastructure Pvt. Ltd.
Shares of Garden Reach Shipbuilders are trading with gains of 4.7% on Monday at ₹2,727, those of Shipping Corporation of India are trading with gains of close to 5% at ₹230.
