Thanks to the Exit Polls predicting a victory for BJP, like always, ‘Gujarat’ stocks are all up in the green, especially Adani group stocks. Adani Enterprises rose over 20% to Rs.143.45, the top gainer on the BSE since morning. Adani Green is currently up 15% and the third top gainer, followed by Adani Power, up over 14%.
The stock markets are very happy as they feel Modi, aka, BJP will be good for the economy, as the Govt will push for infra build and it is in this anticipation, infra, capital goods and power stocks are up in the green. These are some specific stocks, which zoom up or down every time, there is positive or negative news on Modi.
The reason why there is an attraction for such ‘political stocks ‘ is because of the perception that such companies, which have prominent politicians at the helm or strong connections with those in power, get approvals and sanctions much faster.