By Niraj Shah, CNBC-TV18

The Baltic Dry Index has rallied 29% in last one month. It has rallied 80% to 10,105 versus the January-end low of 5,615. The index is now 9% off the November high of 11,039.

It covers dry bulk shipping rates and is managed by the Baltic Exchange in London. It broadly provides price assessment of moving major raw materials by sea. It covers Supramax, Panamax and Capesize dry bulk carriers carrying range of commodities. 

It is a combination of demand for commodities and supply of ships and this is affecting the Dry Baltic Index.  Some have risen on the basis of stock-specific news also.

Stocks have rallied in line with the Baltic Dry Index. In one month shipping stocks like Chowgule has gained 57.97%, Mercator Lines has gained 40.41%, Mundra Port by 29.54%, GE Shipping by 20.7%, SCI by 19.06%, Garware Offshore by 17.87%, Varun Shipping has gained 11.49%, Shreyas Shipping by 9.15%, Great Offshore has gained 5.09% and Dredging Corporation has gained by 3.9%.