Gujarat stocks play dandiya, beat Sensex

MUMBAI: Buoyed by Narendra Modi’s big win in the assembly polls, Gujarat-based companies, especially state-owned ones, outperformed the stock market on a day when the BSE Sensex rose a whopping 692 points.

Expectations of disinvestment in state-owned firms — Gujarat Narmada Valley Fertilizers Company, Gujarat State Fertilizers Company, Gujarat Alkalies and Gujarat Mineral Development — were uppermost in punters’ minds. Price movements ranged between 5-13% vis-à-vis the Sensex’s 3.16%.

“There is expectation that the Gujarat government will divest shares in state-owned companies.” says DD Sharma, senior vice-president, research, Anand Rathi Securities. 

Amitabh Chakraborty, president (equity) at Religare Securities, said the sentiment and outlook for all Gujarat stocks have improved following the victory. However, he cautioned. “One should also keep an eye on the fundamentals.”

Out of over 60 companies with Gujarat in their names, just seven witnessed a decline in their share price on Monday.