The Hindu Business Line : ‘Gujarat’ tag attracts investors

BL Research Bureau The politics of Gujarat shone bright on Dalal Street with companies related to the State catching investor fancy on Monday. Stocks of over 30 companies connected to the State ended the day with gains, a day after the incumbent government in Gujarat was voted back to power.

Companies such as Gujarat Narmada Valley Fertilizers Company, Mundra Port and Special Economic Zone, Gujarat State Petronet, Gujarat State Fertilizers & Chemicals and Gujarat Alkalies and Chemicals were the notable gainers. Shares of index heavyweight Reliance Industries and group company Reliance Petroleum, which has an oil refinery at Jamnagar, too rose by 2.7 and 4.1 per cent respectively. The Sensex also gained 3.6 per cent.

Out of the 38 active listed companies that have ‘Gujarat’ in their name, only five ended up with losses while two, Gujarat Hotels and Gujarat Toolroom, finished the day flat. Less-known companies fitting this description also clocked hefty gains. Investors in Mipco Seamless (19.5 per cent), Gujarat Automotive Gears (5 per cent), Gujarat Foils (4.99 per cent), Gujarat JHM Hotels (4.95 per cent) and Gujarat Petrosynthese (4.94 per cent) landed gains although volumes were thin.

Volumes surged in most of the larger companies, with state-owned companies grabbing the spotlight. Gujarat Narmada Valley Fertilizers Company, which gained 9.41 per cent today, saw daily volume of 8.8 lakh shares as against two-week average quantity of 1.89 lakh shares. The same was true for Gujarat State Petronet (48.2 lakh shares), Gujarat State Fertilizers (73,649 shares), Gujarat Alkalies and Chemicals (10.7 lakh shares) and Gujarat Mineral Development Corporation (1.03 lakh shares).