 "Dalal Street is partying over NaMo win. Check out what's happening to 'Modi' stocks")
New Delhi: The Indian stock market, includingscrips of many Gujarat-based firms, have touched stratosphericlevels on Narendra Modi-led BJP storming to power at Centrebut it has been a roller-coaster ride for a clutch ofsmall-cap stocks with the word “Modi” in their names but
having no relations with the incoming Prime Minister.
The Sensex, which surpassed 25K on Friday and closed at anew closing peak, has gained a solid 14 per cent this calendaryear but shares of companies like Modison Metals and ModiRubber have not made any fantastic gains. In fact, shares ofModipon has dropped sharply on calendar year-to-date basis.
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Image from Modison website[/caption]
None of these companies are related to Narendra Modi andits plain coincidence that their names contain the word’Modi'.
Shares of Modi Naturals is the only firm that seems tohave profited from the ’tsunamo’ at Dalal Street with thescrip shooting up by 145 per cent in this period.
Interestingly, Modison Metals and Modi Rubber have gainedless than 10 per cent during this period.
On May 16 when the stock markets cheered BJP’s victory,investors in Modipon and and Modi Naturals lost 3.5 per centin just one session. Modipon touched its 52-week low of Rs7.40 on Friday as did Modi Rubber (Rs 17.7) on this fatefulday.
In the five days leading to ‘D-Day’ May 16 when resultsshowed Modi-led BJP secured 282 seats – the strongest mandatefor a single party in 30 years – Sensex gained a whopping 5per cent as it shot up from 22,900 levels to 24,000.But investors in Modison Metals lost 7 per cent in thesame time. Stakeholders in Modi Rubber and Modipon lost 2-3per cent in the past five sessions.
Friday saw shares of Gujarat based companies rallyingsharply in early trade, with some hitting 52 week highs, astrend for the 16th Lok Sabha election results showed thatBJP-led NDA was headed for a clear victory.In intra-day trade, stocks of three listed firms of theGujarat-based Adani Group had soared as much as 17 per cent;Gujarat Pipapav followed closely and surged almost 9 per centon the BSE, and Gujarat Mineral Development Corporation (5.93per cent).
Among other gainers Gujarat State Petronet (up 8.41 percent), Gujarat State Fertilizer (5.49 per cent), GujaratNarmada (3.08 per cent), Gujarat Gas (2.75 per cent) ArvindLtd (3.32 per cent), Gujarat Alkali (1.84 per cent) and Cadila(2.07 per cent).
Chemicals stocks such as Gujarat Fluorochemicals and GHCLwere among early gainers. Also, textile and pharma companiesincluding Arvind and Zydus Wellness made gains.The counter for Gujarat-based firms has seen the uptrendsince September 13, when Modi was declared as the PrimeMinisterial candidate.
PTI