Shipping stocks jumped as new rules may boost fleet.
Shipping Corporation of India jumped 8.5 per cent, Mercator surged 10.3 per cent, Great Eastern Shipping rose 5 per cent, while Essar Shipping gained 6.5 per cent.
According to a source, new rules will boost India’s shipping fleet, and may dent foreign shippers.
“It’s an EPS accretive news if and when it materialises,’’ a domestic fund manager said.
Indian state-owned firms may have to give half their freight business to local shippers to help rescue an industry battered by the global commodities downturn.
New Delhi is proposing importers sign 5-year contracts with local shipping firms.
In 2013-14, India had paid about $57 billion in freight payments to foreign firms.
Shipping Minister Nitin Gadkari was not immediately available for comment.