Seafood stocks are buzzing in trade on Wednesday led by strong gains in Avanti Feeds, Apex Frozen and Coastal Corporation, which has hit a 20% upper circuit. All three stocks are trading with gains of at least 12%.
The strong surge in seafood companies in trade comes on the back of positive developments, with regard to India's ties to the European Union.
The EU has recently approved 102 new Indian fishery establishments for export, which serves as a huge boost for seafood stocks such as Avanti Feeds, Apex Frozen, Coastal Corporation and Waterbase.
It reflects strongly on the EU's growing trust in India's food safety and quality control mechanism and comes at a time when Indian marine exporters have been hit by the imposition of a 50% tariff on Indian goods by the Donald Trump administration.
How Seafood Stocks Are Faring
Avanti Feeds: Up 11.3%
Apex Frozen: Up 19.5%
Coastal Corporation: Up 20%
Waterbase: Up 9.45%
United States is currently the biggest marine export market for India. However, the European Union is the second-largest market, with India exporting seafood worth $1.1 billion to the EU in FY24.
During the same period, EU accounted for 12.2% of total Indian trade while India accounted for 2.2% of EU's total traded goods in 2023.
In terms of companies, Apex Frozen has the highest exposure to the EU market, with 39% of its export revenue coming from the region. Avanti Feeds, meanwhile, has an export share of 12%.
EU's approval to Indian fisheries serves as a major green signal amid talks over a free trade deal, which may conclude before the turn of the year.
It also positions India as a strong and trusted seafood supplier while the move may also generate employment and aid foreign exchange earnings, all adding strength to Indian seafood companies.
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