NEW DELHI, May 18: The Indian stock market, including scrips of many Gujarat-based firms, have touched stratospheric levels on Narendra Modi-led BJP storming to power at Centre but it has been a roller-coaster ride for a clutch of small-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 a new closing peak, has gained a solid 14 per cent this calendar year but shares of companies like Modison Metals and Modi Rubber have not made any fantastic gains. In fact, shares of Modipon has dropped sharply on calendar year-to-date basis.
None of these companies are related to Narendra Modi and its plain coincidence that their names contain the word ‘Modi’.
Shares of Modi Naturals is the only firm that seems to have profited from the ‘tsunamo’ at Dalal Street with the scrip shooting up by 145 per cent in this period.
Interestingly, Modison Metals and Modi Rubber have gained less 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 cent in just one session. Modipon touched its 52-week low of Rs 7.40 on Friday as did Modi Rubber (Rs 17.7) on this fateful day.
In the five days leading to ‘D-Day’ May 16 when results showed Modi-led BJP secured 282 seats — the strongest mandate for a single party in 30 years — Sensex gained a whopping 5 per cent as it shot up from 22,900 levels to 24,000.
But investors in Modison Metals lost 7 per cent in the same time. Stakeholders in Modi Rubber and Modipon lost 2-3 per cent in the past five sessions.
Friday saw shares of Gujarat based companies rallying sharply in early trade, 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. (PTI)
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