Sunday, July 13, 2025
HomeStocksModi stocks rise in revenge mode as BJP seen scoring a hattrick...

Modi stocks rise in revenge mode as BJP seen scoring a hattrick in Haryana elections

-

[ad_1]

Languishing in bear grip ever since the Lok Sabha debacle rattled investors in June, 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.

Also read | Fed made FIIs spend Rs 27,000 crore on bank stocks but China forcing a U-turn now

Haryana victory signals continuity in economic policy and, therefore, is positive for markets.

“State elections results will have a positive impact on markets. The victory of BJP in Haryana is a shot in the arm for BJP after the mild setback in the Union elections this year. The victory in Haryana also sends the message that farmers are with the ruling dispensation and this has the potential to slowly revive the farm reforms which had to be shelved following the farmers protests,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

BJP has been the favourite of stock investors as its leadership has been stable and pro-business.

“At least in the short term it may be able to stabilise market corrections. However, although this sentiment may be a short-term driver, one has to be on guard regarding the developing geopolitical dynamics and its influence on supply chain disruption and associated ramifications for the wider economy-these factors would continue to drive the market behavior in the long run,” said Jathin Kaithavalappil, AVP, Choice Broking.

Beyond elections
A part of the rally is also being attributed to China where official state planner National Development and Reform Commission held back from unleashing more stimulus.

The downside in the last few days on Dalal Street was directly related to the resurgence of Chinese equities where a bazooka sucked out liquidity from emerging markets as FIIs followed a “Buy China, Sell India” policy.

Investors had been expecting more stimulus measures from China as its markets opened after a week-long public holiday.

The news had a negative impact on prices of metals in global markets as well as metal stocks in India. Iron ore prices fell 5% while copper, aluminum, zinc and nickel were trading around 2% lower in international markets.

On Dalal Street, NMDC lost 5%, Tata Steel 3% while JSW Steel, Jindal Steel and Hindalco were trading around 2% lower.

[ad_2]

Source link

LATEST POSTS

Ceritafilm Explores the Heart of Every Movie Through Story Reviews

Introducing ceritafilm: Where Movies Meet Meaningful Stories In a world flooded with movie ratings, short reviews, and spoiler-filled discussions, https://ceritafilm.com stands out by offering something truly...

How to Standardise Laptop Setup for Staff: Creating Consistent Configurations

In today’s fast-paced business environment, ensuring that every employee’s laptop is set up consistently is more important than ever. A standardised laptop setup helps streamline...

Turn Health into Wealth with LifeWave X39

In today’s world, people are searching for two things more than ever:✅ Better health✅ Financial freedom With LifeWave X39, you don’t have to choose — you...

Soft Play Bus Essex with Squeeze Rollers & Dizzy Discs – A Fun-Filled Mobile Adventure

In today’s world of children’s entertainment, finding activities that combine physical play with safety and creativity can be a challenge. The Soft Play Bus Essex offers a...

Most Popular

spot_img