Shipping stocks: Mazagon Dock Shipbuilders, Shipping Corporation among three other stocks hit 52-week high; here's why

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Mazagon Dock Shipbuilders share price rose 5.6%, Shipping Corporation of India share price surged 13%, Dredging Corporation Of India share price jumped 5.2%, Cochin Shipyard share price rose 9.8%, and Garden Reach Shipbuilders & Engineers share price surged 7.4% on BSE. The shipping stocks have been on a bull run on the strength of order wins, the Baltic Dry Index reaching over one-month highs on advances across vessel sectors, and most crucially, getting government approval for long-pending biggest order worth ₹19,000 crore for shipping companies.

The government has approved projects worth ₹19,000 crore for shipping companies in which five fleet support ships will be produced and one fleet support ship will be delivered in four years, according to a Zee Business research news article. Mazagon Dock Shipbuilders share price was trading in green for the last two consecutive session after the company signed a master ship repair deal with the US agreement.

"This is to inform that the company has signed Master Ship Repair Agreement (MSRA) with the US Government represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka. This is a Non-Financial Agreement.

There are only two shipyards in the country including Mazagon Dock Shipbuilders who have signed MSRA. The agreement is expected to open-up voyage repairs of US Navy Ships at the company, " the company said in an exchange filing.

On the technical front, Mazagon Dock Shipbuilders stock price rose 456.2% and outperformed its sector by 395.1% in the past year, as per trendlyne data. Further, brokerage firm Kotak Institutional Equities has downgraded Cochin Shipyard stock to a 'sell' from a 'buy' but raised the target price to ₹990 from ₹740 earlier as it indicated the current