Shipping Corp. Locked In 20% Upper Circuit On Report Of Government Fund For Sector
The stock also rallied on media report quoting government officials that the government was in the advanced stage of strategic sales of the Shipping Corporation of India.
Shares of Shipping Corp. of India were locked in the 20% upper circuit on Thursday on reports that the government may set up a maritime development fund to support the shipping sector.
The government may come up with a maritime development fund in the upcoming budget, CNBC-TV18 reported. For quite some time, the government has been mulling over setting up a maritime development fund with the goal of providing low-cost, long-term financial support to the shipping sector.
Adding to this, Mint reported, citing sources, that the Union Ministry of Shipping was in early talks to form a joint venture between Shipping Corp. of India and Indian Oil Corp. to build oil tankers.
Further adding fuel to the stock's rally were media report quoting government officials that the government was in the advanced stage of strategic sales of the Shipping Corporation of India.
Shares of Shipping Corp. of India jumped 20% to hit the upper circuit of Rs 330.15 apiece, the highest level since its listing on Aug 13, 1997. It remained locked in the upper circuit as of 2:03 p.m., compared to 0.15% decline in the NSE Nifty 50 index.
The market cap of the stock rose Rs 729.19 crore to Rs 4,730.65 crore as of 2:03 p.m.
The stock gained 225.59% in the last 12 months and 102.67% on year to date basis. Total traded volume so far in the day on the NSE stood at 9.4 times its 30-day average. The relative strength index was at 77.52, which implied the stock is over bought.
