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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.

<div class="paragraphs"><p>(Source: ONGC)</p></div>
(Source: ONGC)

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."

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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.

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