Shares of Reliance Infrastructure and Tata Power, which supply electricity in the national capital, came under heavy selling pressure today after exit polls suggested that Aam Aadmi Party (AAP) may win Delhi polls.
The results would be announced tomorrow for the Delhi Assembly Elections, which were held on Saturday.
Exit polls have suggested that an AAP government could be formed and there are widespread expectations that it may order inspection of the two discoms and also provide cheaper power in the national capital.
The stocks of Reliance Infrastructure and Tata Power — which operate power distribution companies in joint ventures with Delhi government — declined on concerns that such steps could adversely hit these companies.
Shares of Reliance Infrastructure plunged 8.66 per cent to Rs 419.25 and that of Tata Power Company fell by 2.44 per cent to Rs 80 at the BSE.
“Power stocks that have operations in Delhi fell in a knee-jerk reaction to the exit poll results of AAP’s possible win,” said CNI Research CMD Kishore P Ostwal.
“Markets reacted negatively to exit polls on Delhi election, which indicates the Aam Aadmi Party would form the government in Delhi and that would be the first state election defeat of party ruling in Centre, post Lok Sabha election,” said Jayant Manglik, President-retail distribution, Religare Securities Ltd.
In the broader market also the BSE benchmark Sensex fell by 490.52 points to end at 28,227.39.