Shipping stocks nosedive amid profit booking; Cochin Shipyard, Mazagon Dock fall up to 14%
The top loser was Cochin Shipyard whose stock fell by over 14% to the day's low of Rs 1,032.25. It was followed closely by Mazagon Dock Shipbuilders which plunged nearly 13% at Rs 2,005.10 on the NSE.
Meanwhile, Garden Reach Shipbuilders, Shipping Corporation of India (SCI) and Great Indian Shipping Company shares fell 6.27%, 5.41% and 0.95%, respectively around 11 am.
Both Mazagon Dock and Cochin Shipyard shares have witnessed a strong rally in recent times and have given returns of 13% and 20% over the past 5 trading sessions.
Others like Great Indian Shipping Company, SCI and Garden Reach have given 6-3% returns during this time.
Shipping stocks followed a wider trend where the PSU stocks fell.
Commenting on the recent rally in many of the PSU stocks, Vijay Kedia, Managing Director at Kedia Securities told ETNow that he viewed the recent rally as some kind of euphoria in the PSU stocks.
«I do not know what they should do but the general public should understand what happened in 2022, we discussed just now what this platform stocks, I think the same kind of euphoria is happening in PSU stocks.
Now PSU is just a buzzword, you know. So every time people come in this market with a new theme, with a new dress and new concept and ultimately that concept lasts for maybe six months or one year or maybe two years sometime and then they fizzle out,» Kedia said.
He, however, clarified that he did not mean that the story in these stocks is over and it may play out maybe for a decade or so but valuation is too high and there is euphoria in this market.
«I will not buy those shares. And this is what I can say,» he added.
The stocks fell following the larger market trend.
