Modi stocks rise in revenge mode as BJP seen scoring a hattrick in Haryana elections
Modi stocks – a reference to those related to the government-led capex cycle –bounced back up to 8% in Tuesday's session after BJP was seen heading towards a hattrick victory in Haryana elections, with a simple majority on its own.
PSU stocks, especially those belonging to railways and defence, were among the top gainers in today's trading session. PSU stock RVNL rallied over 8%, HUDCO was up 7% while PFC, REC, IRCON, HAL, BEL, Mazagon Dock and Cochin Shipyard rallied in between 4-6% each.
Shares of Adani Group companies, many of which are also capex plays, also rallied up to 7% with Adani Transmission leading the momentum. The conglomerate's cash cow Adani Ports stock was trading 5% higher while the flagship entity Adani Enterprises was up 4%.
«The result in the Haryana election is better than expected for the market. The narrative that the government will turn more populist is being turned down now and therefore there is a rally in PSU stocks. The order books of these PSUs are driven by the government and now the market is taking an optimistic stance,» Sunny Agrawal, Head of Fundamental Equity Research, SBI Securities, told ETMarkets.
The election results also had a positive impact on the market with Sensex breaking a six-day losing streak to gain up to 700 points during the day. Nifty also rallied 1% to reclaim control over 25,000-level.
Stock Trading
Derivative Analytics Made Easy
By — Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets
Stock Trading
Dow Theory Made Easy
By — Vishal Mehta, Independent
