Gujarat index on Narendra Modi high, yields 34% in eight months

Updated: May 16 2014, 06:43am hrs
SThe Street hopes Narendra Modi's pro-business and pro-reform agendas which will revive the economic growth. AP
Gujarat-based companies feature among top performers in the last eight months after Gujarat chief minister Narendra Modi was officially announced the BJP's prime ministerial candidate. The Street hopes Modi's pro-business and pro-reform agenda will revive economic growth that has fallen to a 10-year low in the last financial year.

An index created by FE shows the Gujarat index, a barometer of stock performance of top 50 companies registered in Gujarat with significant investments in the state, has yielded nearly 34% returns since September 13, 2013, based on the data sourced from Bloomberg and Capitaline. Only the BSE Capital Goods index (62.59% returns) and the Bank Nifty Index (39.84% returns) have outperformed the Gujarat index, data showed.

The Gujarat index is only a pro-forma index and captures the performance of companies with market capitalisation over Rs 500 crore. Our search yielded more than 200 companies registered in the state and an additional 50 companies with significant investments such as plants, factories and corporate offices.

The returns in Gujarat-based index are higher if one includes all 250-plus companies in the state. Some of the names include Adani Enterprises (254%), Sadbhav Engineering (172%), Apollo Tyres (158%), Sintex Industries, (153%), Reliance Industries (21%), Tata Motors (33%).