Shipping corporation, GRSE, BEL, HAL shares climbed more than 10%; what should the investors do now?

Defence Stocks: Shares of several defence and shipping companies rallied sharply on Friday, June 13, even as the benchmark indices traded in the red amid intensifying geopolitical tensions. The sharp gains came after Israel carried out pre-emptive airstrikes on Iran’s nuclear and military sites, triggering fears of a prolonged regional conflict and disrupting global trade sentiment.

Shipping Corporation of India (SCI) jumped over 10 per cent to Rs 227.80, while GE Shipping gained 5.2 per cent to Rs 1,025. Both stocks were among the top gainers on the Nifty 500.

Baltic Dry Index surges 50% in a month; GE Shipping in spotlight

The rally in shipping stocks is also supported by a sharp 50 per cent month-on-month rise in the Baltic Dry Index (BDI), a global freight barometer. The BDI spiked 9 per cent on Thursday alone, as ships are expected to avoid Middle Eastern waters amid the military escalation.

Analysts pointed to GE Shipping’s significant oil and product tanker exposure (nearly 50 per cent of its fleet), calling it a strong play on rising freight and tanker rates. GE Shipping shares are trading at a 35 per cent discount to NAV with high cash reserves and free cash flows above Rs 2,000 crore annually.

SCI surges 25% in one month

Shipping Corporation of India has also seen significant traction, surging over 25 per cent in the last one month. While no analysts actively track the stock, investors are betting on a re-rating due to strengthening shipping demand and strategic PSU positioning amid India’s growing maritime ambitions.

HAL, BEL, Paras Defence, GRSE rally on war premium

Among defence stocks, HAL jumped over 2 per cent to Rs 4,980, BEL rose to Rs 408, and Paras Defence traded near Rs 46, gaining nearly 3 per cent. Garden Reach Shipbuilders (GRSE), Cochin Shipyard, Zen Technologies, Bharat Dynamics (BDL), and Astra Microwave also posted gains in the 2–5 per cent range.

Rs 40,000 crore emergency defence buys, exports at all-time high

Brokerages pointed to structural tailwinds for defence stocks: India’s defence exports touched a record Rs 23,600 crore in FY25, and more than Rs 40,000 crore worth of emergency procurement is underway. CCS-approved projects worth Rs 22,500 crore are also expected to be fast-tracked.

Israel remains one of India’s top defence allies, and escalating conflict may prompt faster clearances and orders for Indian defence PSUs and private players, especially in drones, missile systems, space surveillance, and tactical communications.

Positive outlook for domestic defence ecosystem

Choice Broking said the government's push towards indigenisation under the “Atmanirbhar Bharat” initiative is expected to benefit listed defence stocks. Increased traction from global buyers and higher budget allocations from Europe and Middle Eastern countries are likely to further boost order books and margins.

Market Outlook

With crude oil prices soaring over 10 per cent to $77 per barrel and shipping routes facing uncertainty, defence and shipping stocks could continue to outperform if tensions escalate further. Investors are advised to stay stock-specific and track delivery orders, strategic tie-ups, and earnings upgrades.