'Gujarat' stocks up in the green

Thanks to the Exit Polls predicting a victory for BJP in Gujarat, like always, ‘Gujarat’ stocks are all up in the green. Gujarat Narmada (up 4%), Guj State Petronet (up 1%), GSFC (up 3%), and many more - Guj Alkali, Welspun India, Guj Apollo, Arvind Mills, Nirma, Gujarat Gas, Aarvee Denim, Torrent Power, Torrent Cables, Cadilla Helthcare, Dishman Pharma, United Phosphorous, Alembic Pharma, Atul Auto.

The stock markets are very happy as they feel Modi (not BJP) will be good for the economy, he will push for infra build and it is in this anticipation, infra, capital goods and power stocks are up in the green. These are some specific stocks, which zoom up or down every time, there is positive or negative news on Modi.

The reason why there is an attraction for such ‘political stocks ‘ is because of the perception that such companies, which have prominent politicians at the helm or strong connections with those in power, get approvals and sanctions much faster.