Shipping, Logistics Stocks Trade Over 8% Higher On Cues Of De-escalation In West Asia

Shipping and logistics stocks rallied on the bourses on Wednesday after improved investor sentiment amid growing hopes of de-escalation in the ongoing United States-Israel-Iran war.

Shares of companies like Shipping Corporation of India (SCI) and Delhivery gained up to 7 percent during the trade to become the top performers in the broader market.

The stock of SCI opened 4.3 percent higher at Rs 229.35 apiece. It further surged to Rs 237.95 apiece, a rise of 8.2 percent compared to the previous close of Rs 219.80 apiece.

Towards the later hours of the trade, the stock was hovering at around Rs 232, which was 5.6 percent higher.

Similarly, the stock of logistics major Delhivery also jumped on Wednesday. The stock opened 4.3 percent higher at Rs 434.60 apiece and further rose to Rs 440.7, or 5.7 percent.

It later pared some gains to trade at around Rs 435.5, which was still 4.5 percent higher than the previous close.

The stocks of other shipping companies also gained. While the scrip of Great Eastern Shipping Company jumped as much as 5.4 percent, the stock of Shreeji Shipping Global was trading almost 5 percent higher than the previous close.

The rally comes as signs of a potential slowdown in the conflict between the United States, Israel, and Iran boosted risk appetite across global equities.

Investors are factoring in the possibility of a near-term easing of tensions, which could restore stability to disrupted trade routes and shipping corridors.

Shipping and logistics companies are sensitive to geopolitical developments in West Asia, given the strategic importance of the Strait of Hormuz, a key route for global energy and cargo flows.

The prolonged conflict has driven freight rates, insurance premiums, and operational risks higher, benefiting shipping firms due to tighter supply conditions.

Despite the optimism, analysts caution that volatility may persist. While geopolitical risks appear to be easing, the Strait of Hormuz remains a critical flashpoint, and any delay in reopening key routes could continue to disrupt shipping flows and keep costs elevated in the near term.