Logistics stocks surge up to 7% after FM proposes plan for swift movement of goods in Budget

Shares of logistics companies jumped after Finance Minister Nirmala Sitharaman said the government will focus on swifter movement of goods across the country while presenting the Union Budget 2022.

The Finance Minister said data exchange among all-mode operators will be brought on Unified Logistics Interface Platform. This will enable efficient movement of goods, reduce logistics costs and time, assist Just-In-Time inventory management and eliminate tedious documentation.

As part of the ‘Gati Shakti’ plan, the government is going to focus on better road and rail connectivity, which includes building 25,000 kilometers of roads.

Following the announcement, logistics stocks were trading higher on Tuesday. Allcargo Logistics (up 6.71%), Corporate Courier & Cargo (up 4.94%), Sanco Trans (up 4.55%), Sical Logistics (up 4.35%), Patel Integrated Logistics (up 3.61%), Transport Corporation of India (up 3.31%), Orissa Bengal (up 2.80%), Future Supply (up 2.69%) and Apollo Tricoat (up 2.68%) were among the top gainers.

Losers included Inter State Oil (down 4.92%), MFL India (down 4.59%), Jet Freight Logistics (down 3.68%), Tiger Logistics (India) Ltd (down 1.37%), Lancer container (down -1.24%), Blue Dart Express (down 1.14%), Kesar Terminals & Infrastructure (down 0.89%) and RITCO (down 0.14%).

The NSE Nifty50 index was trading 232.15 points up at 17,572.0, while the 30-share BSE Sensex was up 842.85 points at 58,857.02 at around 11:23 am.

Analysts lauded the step. Along with logistics stocks, construction stocks also moved up.