Shipping Corporation of India Shares Rally 14%, Extend Gains for Third Day Amid Heavy Volumes

Shipping Corporation of India (SCI), the country's largest shipping company, experienced a robust rally of over 14 percent in its share price on March 20, continuing its upward trend for the third consecutive session. This surge was driven by heavy trading volumes, which were 17 times higher than the stock's 10-day average, signifying strong investor interest and bullish sentiment in the counter.

The stock was trading at approximately Rs 180 apiece, marking a strong recovery from its 52-week low of Rs 138 per share recorded on March 3. Despite the recent uptick, the stock still remains 53 percent below its 52-week high of Rs 384, which it had achieved in July last year.

SCI Shares Benefit from Broad-Based Market Rally

The current rally in SCI shares coincides with broader gains in the Indian equity markets, particularly in the defence and shipping sectors. On March 20, the Sensex surged over 600 points, hovering around 76,077, while the Nifty rose nearly 1 percent to stand at 23,113. This positive momentum has been a key driver behind SCI’s stock performance, as investor appetite for undervalued and strategic PSU stocks has increased.

Market participants note that the surge in SCI shares is supported not just by technical buying but also by fundamental triggers, including developments in the government’s disinvestment strategy, which has kept interest alive in key public sector undertakings (PSUs).

SCI Land and Assets Limited Also Records Strong Gains

Adding to the enthusiasm, SCI’s subsidiary, Shipping Corporation of India Land and Assets Limited, also saw a sharp rise in its share price, gaining nearly 10 percent to trade around Rs 51 per share. This stock too has extended gains for the third consecutive day, rising approximately 16 percent over the last three sessions.

The synchronized movement of both SCI and its subsidiary's stock indicates renewed investor confidence, possibly fuelled by anticipation of a resolution in the long-pending strategic sale of SCI, which has been delayed due to various regulatory and procedural hurdles.

Strategic Disinvestment in Focus

One of the major fundamental factors driving SCI’s stock is the government’s plan to undertake a strategic sale of its 63.75 percent stake in the company. This move is part of the Centre’s broader disinvestment agenda, aimed at raising funds for the exchequer and enhancing operational efficiency in key PSUs.

Initially, the stake sale was expected to fetch Rs 3,000 crore, but prolonged delays in execution have cast uncertainty over its completion timeline. The government has been evaluating bids and working on regulatory clearances to expedite the process, but market sentiment suggests optimism that a breakthrough could emerge, particularly with the rising strategic value of shipping and logistics assets in the post-pandemic global supply chain landscape.

Market Outlook and Analyst Commentary

Analysts believe that SCI’s current price momentum could be sustained in the near term, especially if institutional interest continues and positive developments emerge around the strategic sale. The massive spike in trading volumes is being seen as a technical confirmation of strong buyer interest, which could lead to further upside potential, provided market conditions remain favourable.

Additionally, global shipping trends and higher demand for maritime logistics services are also seen as tailwinds for companies like SCI, positioning them well for future growth, especially once policy-level clarity is achieved on ownership and operational frameworks.

Conclusion

The sharp rally in Shipping Corporation of India shares, backed by record trading volumes and optimism around disinvestment, underscores the market’s bullish view on strategic PSUs. As investor focus remains on government stake sales, SCI’s stock is likely to remain in the spotlight, especially if positive signals on the stake sale emerge.

For now, the third consecutive day of gains and robust volume action indicate strong momentum, with investors closely watching government announcements and market trends for the next phase of SCI’s journey.

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