Mazagon Dock, SCI, other shipping stocks rise; Rs 65,000 crore sectoral boost coming soon?

Most shipping and port stocks are in demand on Dalal Street, with Shipping Corp, Global Offshore and GRSE rising around 1-2 per cent each. According to sources, the government is in the process of clearing schemes worth Rs 65,000 crore for the country’s shipping space soon.

Mazagon Dock Shipbuilders, Shipping Corporation of India, Garden Reach Shipbuilders & Engineers and several other shipping and ports-related stocks staged sharp moves on Thursday amid market buzz that the Centre is mulling major schemes for the sector. 

What’s driving shipping and port stocks higher? Mazagon Dock Shipbuilders, Shipping Corp, Garden Reach shares rise

According to sources, the central government is likely to clear schemes worth around Rs 65,000 crore for the shipping space soon, with the Union Cabinet seen clearing the proposals within the next one month. 

Approvals to the tune of Rs 25,000 crore, Rs 20,000 crore and Rs 19,000 crore are likely for the Maritime Development Fund (MDF), the Maritime Development Fund (MDF), and the Shipbuilding Financial Assistance Policy, respectively, said the sources. 

The Expenditure Finance Committee (EFC) — under the Ministry of Finance’s Department of Expenditure — has already granted approvals for the schemes, they said. 

The EFC is a high-level panel whose primary function is to evaluate proposals for government projects involving significant expenditure.

The nod of the Cabinet — chaired by Prime Minister Narendra Modi — is set to give a major boost to shipbuilding, shipping and ship-breaking segments. 

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How shipping and ports stocks are performing today

At 11 am, GE Shipping, Shipping Corp, Mazagon Dock, Garden Reach, Global Offshore and Gujarat Pipavav traded up to three per cent higher. 

Meanwhile, benchmark index Nifty50 registered mild gains amid buying interest in financial and energy shares in Thursday’s trade. The market barometer was on track to close higher for the sixth trading session in a row.