India-Iran Chabahar port deal: Time to bet on Indian shipping stocks?

Among shipping stocks - SCI, GE Shipping and Dredging have logged multi-fold returns over the last few years; here's what the chart suggests for the likely trend going ahead.

India and Iran on Monday signed a 10-year long-term bilateral contract for the operation of Chabahar Port, a vital cog in India's trade plans with central Asia and parts of Europe.

Under the agreement – signed between India Port Global Limited (IPGL) and the Ports and Maritime Organization (PMO) of Iran – India will develop the strategic port for 10 years.

Prior to this, India had been operating the port through short-term agreements as the geopolitical nature of the country kept investors and shippers reticent from investing there, citing the lack of the government’s own long-term agreement so far.