The war between israel and iran has already begun. During this time the shares of Shipping Corporation of india Limited (SCI) and GE Shipping Limited registered a rise of 13% and 6% respectively on friday, 13 June. Despite the fall in the market on the last trading day of the week, the shares of these companies were among the profit-makers on the Nifty 500 index today.
Rise in the shares of shipping companies
israel carried out air strikes on the capital of iran on friday morning, targeting the country's nuclear infrastructure. israel targeted 4 nuclear and 2 military bases of iran with 200 fighter jets. It was only after this news that the shares of shipping companies saw a rise. The Baltic Dry Index has also risen by about 50% in the last one month. It has risen by 34% in june alone. BDI is a benchmark of the price of transporting raw materials by sea.
Shipping companies may make profits
Market experts say that GE Shipping may benefit from the growing tension in the Middle East. Up to 50 percent of the company's fleet consists of oil and product tankers. Experts believe that in case of tension between the two countries, tanker rates may increase because in case of war, ships will keep distance from the Middle East. Experts also say that iran exports 2 million barrels of oil every day, which is 2 percent of the global supply.
Why did the shares of shipping companies rise?
Let us tell you that the shares of Shipping Corporation of india were among the most profitable shares on Nifty 500. The company's shares are trading at 235.41 today, up about 14 percent, while GE Shipping shares are also trading at 1,036, up 6.3 percent. The reason for this surge in share prices is the possibility of disruption in the world's most important shipping.
In fact, the war between two radical countries of West Asia will affect the movement of ships in the red Sea. india is dependent on this route for import-export to Europe, America, Africa and West Asia. indian ships bring and take goods from the red Sea via the Suez Canal. If the tension between iran and israel increases, the movement of ships in the red Sea will be affected and ships will have to carry goods through other alternative routes. This will increase the cost of shipping. In such a situation, there remains scope for shipping companies to make profits..jpg)
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