Shares of Gujarat based companies rallied sharply in early trade today, with some hitting 52 week highs, as trend for the 16th Lok Sabha election results showed that BJP-led NDA was headed for a clear victory.
In intra-day trade, stocks of three listed firms of the Gujarat-based Adani Group had soared as much as 17 per cent; Gujarat Pipapav followed closely and surged almost 9 per cent on the BSE, and Gujarat Mineral Development Corporation (5.93 per cent).
Among other gainers Gujarat State Petronet (up 8.41 per cent), Gujarat State Fertilizer (5.49 per cent), Gujarat Narmada (3.08 per cent), Gujarat Gas (2.75 per cent) Arvind Ltd (3.32 per cent), Gujarat Alkali (1.84 per cent) and Cadila (2.07 per cent).
Chemicals stocks such as Gujarat Fluorochemicals and GHCL were among early gainers. Also, textile and pharma companies including Arvind and Zydus Wellness made gains.
The counter for Gujarat-based firms has seen the uptrend since September 13, when Modi was declared as the Prime Ministerial candidate.
Gujarat-based Arvind Ltd has jumped over two-fold since then, while Gujarat Pipavav Port is up over two-fold, Gujarat Mineral Development Corporation up 46.2 per cent, while Cadila up over two-fold, while Gujarat Alkalies and Chemicals up 23 per cent. since September 13.
The BJP, marketmen said, is widely perceived as more business-friendly. Japanese brokerage Nomura had said a Modi-led government will trigger up to a 10 per cent rally in the stock market.
The broader market today touched a record high of 25,247.54.