Shipping Corporation of India Share Prices Surges to ₹180 Amid Market Rally

Shipping Corporation of India Share Prices Surges to ₹180 Amid Market Rally

The shares of the Shipping Corporation of India (SCI) experienced a rally of over 14 percent, marking their third consecutive session of gain. On March 20th, the shares of India's largest shipping company were trading at around ₹180.

Significant Increase in Trading Volume and Price Recovery 

This sharp increase in SCI's share price was accompanied by significantly higher trading volumes, which were nearly 17 times higher than the 10-day average. Following a 52-week low of ₹138 per share on March 3rd, the stock has shown a strong recovery. However, it is still 53 percent lower than its 52-week high of ₹384 per share, which was reached in July of the previous year.

Broader Market Context 

The rally in SCI's share price occurred alongside a surge in the shares of defence and shipping companies. This coincided with an overall market uptrend, where bulls took charge after a considerable slump. On March 20th, the Sensex was up by over 600 points, hovering around 76,077, and the Nifty rose by nearly 1 percent to stand at 23,113.

Performance of SCI's Subsidiary 

SCI's subsidiary, the Shipping Corporation of India Land and Assets Limited, also witnessed a strong rise in its share price. The stock jumped nearly 10 percent to trade at approximately ₹51 per share. This extended the subsidiary's gains to the third consecutive day, with an overall increase of nearly 16 percent during this period.

Strategic Sale of Shipping Corporation of India 

Notably, the Shipping Corporation of India is undergoing a strategic sale as part of the government's wider disinvestment strategy. This sale involves the government selling its 63.75 percent stake in SCI. The sale was initially anticipated to generate ₹3,000 crore for the government treasury. However, prolonged delays have introduced uncertainties regarding the completion of the sale.

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