Shipping stocks rally On June 13, the Indian stock market is trading in the red. On one hand, while the shares of most companies are sinking, on the other hand, the shares of the government company Shipping Corporation of India made huge profits for the investors. Today its shares rose up to 14 percent.
On June 13, while the Indian stock market is declining on one hand, on the other hand, the shares of a government company made huge profits for the investors. On Thursday, the demand for shipping shares was very high. Because the increasing tension in the Middle East gave rise to fears of an increase in tanker rates. Due to this, the shares of India’s government company Shipping Corporation of India rose at a rocket speed.
The company’s shares rose by 14 percent today. Its shares went up to Rs 236. At the time of writing this news, the company’s shares are trading at Rs 228.40 with a gain of 10.66 percent i.e. Rs 22. Shipping Corporation of India (Shipping Corporation of India share price) made the investors who traded on intraday today millionaires.
The investors who bet on Shipping Corporation of India in intraday today got tremendous benefits. Apart from this, a stormy rise was also seen in the shares of GE Shipping. The company’s shares rose by 6 percent. At the time of writing this news, the company’s shares are trading at Rs 999.80 with a gain of 2.54 percent.
If the situation worsens, the shipping company will benefit
If the situation between Israel and Iran (Iran Israel conflict market impact) worsens further, then shipping companies will directly benefit from this. This includes two major shipping companies of India. Shipping Corporation of India and Great Eastern Shipping Company Limited.
Great Eastern Shipping Company Limited will benefit the most in this. Because it has about 50 percent of oil and product tankers. If the conflict between the two countries continues, trade in the Middle East will be disrupted. Ships will stay away from this region, which will reduce global shipping supply. This may increase tanker rates even more.
Iran currently exports about 2 million barrels of oil per day. This is about 2 percent of the world’s supply. Shipping Corporation of India will also benefit from the increase in tanker rates. This is the reason why the shares of shipping companies are running like a rocket.
Shipping Corporation of India is in the business of transportation. It manufactures crude oil tankers, product tankers, container ships, LPG carriers etc. Additionally, the company also manages a large number of ships on behalf of various government departments and other organizations.