India: Shipping stocks jump 5-6% as Baltic Dry Index hits yr-high

Shares of Shipping Corporation of India and Varun Shipping jumped 5-6 percent intraday on Thursday as Baltic Dry index (BDI) hit year-high levels on Wednesday. The index has climbed consistently in June, after being under pressure in beginning of the year. BDI is an indicator for the bulk shipping industry. It tracks a number of shipping routes and the prices paid for transporting major bulk commodities. It’s useful for assessing the outlook of global trade.

A rising BDI is positive for the shipping industry. According to reports, BDI is rising mainly due to increase in grain volumes in the Atlantic. Also, the recent rally in the BDI is led by Capesize rates. At 13:22 hrs Shipping Corporation of India was at Rs 52.20, up Rs 1.95, or 3.88 percent while Varun Shipping Company was at Rs 11.06, up Rs 0.51, or 4.83 percent on the BSE.
Source: Money Control