Gujarat firms' stocks settle mixed, trade volatile, as Narendra Modi set to turn PM, Adani Group soars

Written by PTI | Mumbai | Updated: May 17 2014, 00:13am hrs
Shares of Gujarat based companies today settled on a mixed note amid volatile trading on stock exchanges as the 16th Lok Sabha poll results showed Narendra Modi's BJP-led NDA heading for a clear victory.

Three listed firms of Gujarat-based Adani Group ended up to 6 per cent higher, while Gujarat State Petronet followed closely and closed with gains of 5.68 per cent on the BSE.

Gujarat Pipapav rose by 3.02 per cent while GHCL and Gujarat Mineral Development Corporation closed up with marginal gains.

Some of the Gujarat-based companies settled in the negative zones due to heavy profit booking following sharp gains during the day trade.

Gujarat State Fertilizer, which had rallied 5.49 per cent during the day, closed down 2.39 per cent, Gujarat Gas by 4.81 per cent, Gujarat Alkali by 2.04 per cent, Cadila by 3 per cent, Arvind Ltd by 5.85 per cent and Zydus Wellness fell by 4.33 per cent.

"The markets rallied wildly with the Sensex jumping more than a 1000 points in early morning trading before ending the day 216 points up. The fall is most likely due to investors locking in profits after the huge surge in the morning," RKSV Cofounder Raghu Kumar said.

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 30-share index today surged 1,470 points to hit a new life-time high of 25,375.63 but retreated on massive profit-booking and concluded at a new closing peak of 24,121.74, a gain of 216.14 points or 0.90 per cent.

The BJP, brokers 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.