Shares of logistics firms jumped in Tuesday's trade as the government has given infrastructure status to the logistics sector, covering cold chain and warehousing facilities, a move that is likely to attract more funding at competitive rates for these segments.
The government has been working on ways to attract more investments into transport and logistics as part of efforts to bolster infrastructure development in the country.
At the closing trade, Allcargo Logistics was up 1.36% at Rs 171, Concor 4.95% at Rs 13.77, and TCI Express 1.2% at Rs 586.35.
However, Gati, Transport Corporation and VRL Logistics shares reversed their gains and ended lower. Gati stock was down 5.76% at Rs 132.55, Transport Corporation -1.47% at Rs 287.50 and VRL Logistics down 0.39% at Rs 391.
Development of logistics sector would boost domestic and external demand, encourage manufacturing and 'job creation' which will in turn improve GDP, the Finance Ministry said in a Twitter post.
TCI Express was up 102 per cent this year, as of Monday's close, while Transport Corp rose 95 per cent during the same period.
(With inputs from Reuters)