Logistics companies shares jump up to 11% intraday: Here's what driving the segment – Check Details

Logistics companies’ shares were on roll as they gained up to 11 per cent on the BSE during Wednesday’s trading session, as Prime Minister Narendra Modi is all set to release the National Logistics Policy on Saturday, September 17. 

Individually, Mahindra Logistics shares jumped most by around 11 per cent to Rs 543.7 per share, along with Aegis Logistics shares up over 10 per cent to Rs 299.5 per share, while shares of Allcargo Logistics hit a new 52-week high of Rs 444.7 apiece, up over 7 per cent on the BSE intraday.  

National Logistics Policy is aimed at promoting a seamless movement of goods across the country, Commerce and Industry Minister Piyush Goyal said on Tuesday. It is expected to focus on several areas such as process re-engineering, digitisation, and multi-modal transport, a PTI report said. 

"On September 17, the prime minister is going to release the country's logistics policy," Goyal said here while addressing the members of the Board of Trade. The government has emphasised the need to reduce logistics costs in the country from the current levels of 13-14 per cent of GDP. 

According to the commerce ministry, the sector is complex with more than 20 government agencies, 40 PGAs (Partner Government Agencies), 37 export promotion councils, 500 certifications, over 10,000 commodities, and a USD 160 billion market size. 

The government, in Budget 2020, announced that it will soon release the National Logistics Policy. The move assumes significance as high logistics cost impact competitiveness of domestic goods in the international market. 

The sector provides livelihood to more than 22 million people and improving the sector will facilitate 10 per cent decrease in indirect logistics cost leading to the growth of 5 to 8 per cent in exports, the ministry had stated. As per estimates, the worth of the Indian logistics market is over USD 200 billion.