Two news have set shipping stocks sailing today. First one. It is not yet officially confirmed but news is out that the Indian Govt has granted “infrastructure status” to large ships.

This is good news as this status will allow:

• Easier access to long-term financing (priority sector lending, cheaper loans).
• Tax benefits (including possible exemptions/deductions).
• Access to special funds (infrastructure lending schemes, insurance).
• For shipbuilders, this lowers cost of capital, making expansion and fleet modernization more viable.

The second news.  Indian Navy is expected to issue a tender worth Rs.80,000 crore for four large landing platform docks (LPDs). LPDs are amphibious warfare ships used to transport and land troops, vehicles, and equipment.

Such a tender represents a massive opportunity for Indian shipyards (public & private) like Mazagon Dock, Cochin Shipyard, Garden Reach Shipbuilders, L&T, etc.

This has naturally led to shipping stocks like Cochin Shipyard, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers (GRSE) and Shipping Corporation of India (SCI) seeing strong buying interest. Heavy volumes and momentum trades were seen as investors priced in the potential long-term benefits.