Markets
Two port stocks stand out on the charts. Is Adani Ports one of them?
Summary
- If you are wondering where to look next for growth, India’s port sector might be the answer.
MUMBAI : India’s port sector is on the rise, and it’s a story worth paying attention to. With over 7,500 kilometres of coastline and over 200 ports, India is becoming a maritime powerhouse. In 2023, the 12 major ports collectively handled 819 million tonnes of cargo—up 4.45% from the year before.
With the government planning a massive $82 billion investment in port projects by 2035, India’s ports are poised to make an even more significant impact on global trade.
Also Read: Centre wants no inland waterway terminals near major ports, cites ‘economic interests’
So, if you are wondering where to look next for growth, India’s port sector might be the answer.
Port stocks: Return vs the Nifty's rally
Port sector stocks: How they’re faring vs. Nifty
As the port sector is booming, investors are beginning to notice. While the Nifty 50 has risen by over 38% since March 2023, the port sector has stood out, with stocks offering serious growth potential.
Let’s look at two in particular: Seamec Ltd and JSW Infrastructure Ltd. These are stocks worth adding to your watchlist if you want to ride this potentially bullish wave in the ports sector.
Seamec Ltd: Strong technical signals
Seamec has been showing strong signs of growth lately. It’s been consolidating within a long-term ascending triangle pattern, and a recent breakout has further strengthened its bullish outlook. Currently, the stock price has solid support at its previous breakout level and the 50-week moving average. And there’s more—the 14-period relative strength index (RSI) shows a bullish divergence, often suggesting a possible reversal from recent declines. If you’re considering stocks in this sector, Seamec Ltd deserves a closer look.
JSW Infrastructure Ltd: A promising start and resilient trend
JSW Infrastructure has had an impressive run since its listing in October 2023, delivering over 100% returns and hitting an all-time high of ₹360. Though it saw a bit of a correction, the stock now finds strong support and trades within an ascending triangle pattern.
Also Read: The Adani group’s resurgence: A $5-7 bn war chest for cement, ports, defence and other acquisitions
It recently tested the 200-day simple moving average (200SMA), a long-term moving average signalling the support area as per technical analysis. The RSI slope has turned northwards from an oversold level, indicating a potential pick in the port space.
Why the port sector holds big potential for investors
India’s port sector is more than just a logistical network; it’s a vital part of the country’s economic engine. From supporting domestic logistics to connecting India with international markets, ports are crucial to the nation’s growth. With government investments, strategic projects, and supportive policies, India is on track to become a serious player in global maritime trade.
For more such analysis, read Profit Pulse.
The port sector might be a great fit if you are looking for investment opportunities that tie into India’s long-term growth story. Stocks like Seamec and JSW Infrastructure should be on your watchlist. As India’s port industry expands, these stocks could offer growth potential and stability.
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per Sebi guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Ltd may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India's financial markets. He is a well-known face on the business channels as a market expert and has worked with Asit C. Mehta, Kotak Commodities, and Axis Securities. Presently, he is head of the technical and derivative research desk at Jainam Broking Ltd.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Ltd may or may not own these securities.
