Profit Booking in Shipping Stock Results in Downward Trends; SCI Loses More Than 6%

Mumbai, June 17, 2025: Shares of major shipping companies tanked during the early trading hours on Tuesday. Most notably, Shipping Corporation of India (SCI) fell by almost 6.25% as of 12:00 PM Tuesday. The primary cause is profit booking by investors after a week’s rally.

Other factors responsible for the downward rally include receding Middle Eastern tensions and sector-wide corrections after overbought signals. Global cues have largely aimed at reducing risk appetite, thereby allowing investors to buy ‘safer’ stock alternatives.

Profit Booking Pulls Down Shipping Stocks

After soaring nearly 20 percent this month, SCI shares declined sharply, trading at ₹220.56, down ₹14.74 or 6.26 percent, as of 12:00 p.m. on June 17. At 11 a.m., the stock was down 5.7 percent at ₹221.81 on the NSE.

Around the same time, Great Eastern (GE) Shipping dropped 1.87% percent to ₹986.35, as selling pressure reached other key stocks in the shipping sector.

Middle East Tensions Drove Previous Rally

The shipping stock had recently witnessed a rally due to the geopolitical tensions between Israel and Iran. Investors predicted a rise on container shipping rates as the crude oil prices fluctuated and there were expected disruptions through the Strait of Hormuz. However, since the industry analyst have written off the probability of any such blockage, the overall panic has reduced, and the stock prices have corrected dramatically.

Domestic Rate Hike Adds to Volatility

Adding to the volatility, container shipping rates in India surged by 70 percent month-on-month in June 2025, according to Emkay Global. This spike followed a temporary pause in US tariffs, but rates remain 40 percent below the highs of July 2024.

While shipping rates may stabilize on most routes, uncertainties remain for the trans-Pacific corridor, especially with ongoing port congestion and geopolitical unrest, which could continue to impact container spot rates in the near term.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations