Updated Jun 9, 2024 | 04:22 PM IST
Photo : ET Now Digital
The benchmark equity indices ended the week’s last trading session with gains. The indices, which plunged sharply on the election result day on June 4, recovered sharply and continued to edge higher for the next three consecutive days.
Senior BJP Leader Narendra Modi is all set to return to power as Prime Minister of the country for the third consecutive term as the BJP-led National Democratic Alliance (NDA) has secured the majority in the 18th Lok Sabha Elections. Ahead of the election results, noted brokerage firm CLSA had released a list of ‘Modi stocks‘ that have been beneficiaries during the incumbent government’s term, and the brokerage expected them to witness a rally if PM Narendra Modi returned to power on June 4. In a note, CLSA had released a list of 54 such stocks from the F&O universe of 183 liquid stocks. Interestingly, 50 per cent of these 54 ‘Modi Stocks’ are PSUs. “This may be the basket which continues to rally the most if the market celebrates a strong election result for the ruling party on June 4, or vice versa,” the brokerage said.
The benchmark equity indices BSE Sensex and NSE Nifty, however, plunged sharply, settling nearly 5 per cent lower on June 4, as election results indicated BJP not securing the majority on its own. The Election Commission of India declared results for all 543 Lok Sabha constituencies, with the BJP winning 240 seats, shy of 32 seats for a majority in the lower house.
The benchmark equity indices ended the week’s last trading session with gains. The indices, which plunged sharply on the election result day on June 4, recovered sharply and continued to edge higher for the next three consecutive days. On Friday, the 30-share BSE Sensex made an all-time high of 76,795.31 and finally settled at 76,693.36, up 1,618.85 points or 2.16 per cent. Mirroring Sensex, Nifty also went up by 468.75 points or 2.05 per cent to settle at 23,290.15 on Friday, June 7, 2024.
CLSA in its report had called ONGC, NTPC, NHPC, SBI, Power Finance, IGL, and Mahanagar Gas as preferred BUYs within this basket of Modi stocks. Out of the non-PSU Modi stocks, CLSA analysts like Ashok Leyland, Ultratech, L&T, and the tariff-hike-linked telecom stocks via Bharti Airtel, Indus Towers, and Reliance.
Although these stocks plunged sharply on Tuesday, June 4, 2024, on the election results day, they showed a sharp recovery later on for the next three consecutive sessions.
All the PSU stocks from the basket of Modi stocks on which CLSA had assigned a Buy rating, including ONGC, NTPC, NHPC, SBI, Power Finance, IGL, and Mahanagar Gas, ended the week’s last trading session with gains and settled higher.
Stocks other than PSUs from the basket of Modi stocks on which CLSA had assigned a Buy rating, including Ashok Leyland, Ultratech, L&T, Reliance, Bharti Airtel, and Indus Towers, have also ended the week’s last trading session with gains and settled higher.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
