Shipping Corporation of India Share Price Drops 6% Amid Profit Booking

Market Performance

On Tuesday, June 17, shipping stocks faced heavy selling pressure as investors opted to book profits following a strong rally over the past month.

• Shipping Corporation of India's share price dropped by 5.7% to ₹221.81 on the NSE around 11:00 AM.
• The broader shipping sector also saw a decline:
  • GE Shipping slipped 2.2% to ₹982.70
  • Essar Shipping declined 0.9% to ₹30.51

Despite Tuesday's decline, SCI shares have witnessed a 20% surge over the last month.

Main News

The correction in Shipping Corporation of India's share price comes after a month-long rally triggered by geopolitical concerns and rising global shipping rates.

• Rising geopolitical tensions in the Middle East, notably between Israel and Iran, drove a spike in investor interest in shipping stocks.
• The Strait of Hormuz, a vital channel responsible for nearly 20% of global oil and LNG shipments, was seen as a potential chokepoint.
• These concerns had earlier pushed crude oil prices past the $80 per barrel mark, leading to speculation about rerouted shipping paths and boosting sentiment in shipping counters.

However, with no immediate threat to the Strait's operation, the earlier fears have started to ease.

Company Details

Shipping Corporation of India Ltd is a state-owned enterprise involved in shipping and maritime transport. Its stock saw significant gains over the past month, driven by:

• Increased container shipping rates
• Ongoing geopolitical tensions
• Speculative investor activity

The recent correction reflects profit booking, a common trend that often follows rapid stock price increases.

Domestic Shipping Trends

The domestic shipping sector experienced a sharp rise in container shipping rates during June 2025:

• Container rates surged 70% month-on-month (MoM) compared to May 2025
• This jump followed a temporary pause in tariffs by the United States

Despite the surge, current container rates remain 40% below the peak levels reached in July 2024.

Summary of the Article

• The share price of Shipping Corporation of India fell nearly 6% amid profit booking.
• Other shipping stocks, such as GE Shipping and Essar Shipping, also experienced declines.
• The drop follows a sharp month-long rally fueled by geopolitical concerns.
• Container shipping rates rose significantly in June, yet they remain below last year's highs.
• The recent dip is viewed as a typical market reaction to profit-taking following substantial gains.