Shipping building co's sail high

Ship building company stocks are sailing high today. ABG Shipyard has seen an unusual spurt of volume, rising over 10 times and it currently rules over 15% higher at Rs.263. Bharti Shipyard is also up, breaching the 10% upper circuit at Rs.38.85. Pipavav Defence is also up and it briefly breached the 5% upper circuit at Rs.47.25.

These two prominent stocks in the ship building sector are reacting to unconfirmed news emerging that Govt is looking at giving sops to encourage ship building in the country. There is news of this sector gaining an infrastructure status and companies could also be provided with interest subvention.

A report in Financial Express states that the Govt is also exploring the option of routing all defence and PSU orders to Indian shipyards. Providing incentives and sops to ships built from locally sourced raw material is also on the agenda. The report also suggests the mooting of a fund, exclusively to meet the needs of ship building companies.