Power Grid, NTPC, ONGC Lead PSU Stocks Surge After Exit Polls Indicates Policy Continuity
Share of Power Grid Corp, NTPC and Bharat Electronics hit an all-time high during trade on Monday.
Shares of public-sector enterprises surged on Monday as market participants cheered exit poll results that showed a clear victory for the National Democratic Alliance, indicating policy continuity.
The pro-incumbency wave would imply policy continuity, a sustained focus on capex, fiscal consolidation in the final budget, and potential factor market reforms, Nomura said in a note.
India is witnessing its own mini-Goldilocks moment with excellent macros, solid corporate earnings, a focus on manufacturing, capex, and infrastructure creation, according to Motilal Oswal Financial Services Ltd. "Industrials, consumer discretionary, real estate, and PSU banks are key preferred investment themes."
Shares of Power Grid Corp. and NTPC India Ltd. led gains with a rise of 10.3% and 7.5%, respectively. On Monday, Power Grid Corp., NTPC, and Bharat Electronics Ltd. stock hit an all-time high during trading.
Oil and Gas Corp. and Coal India Ltd. shares were trading over 5%, while Oil India Ltd., NBCC India Ltd., and NHPC Ltd. stocks were up over 4% each.
