Shares of east India-based companies, led by diversified business group ITC, rose in the range of 3.10-0.24 per cent on BSE today as sentiments were boosted after the Left was routed in West Bengal Assembly elections by Mamata Banerjee-led Trinamool Congress for the first time in 34 years.
ITC stock ended at Rs 189.50, up 3.10 per cent from the previous close on the Bombay Stock Exchange (BSE). In intra-day trade, the scrip jumped by 4.3 per cent to a high of Rs 191.80. The stock was the second best performer among the bluechip companies.
“This is a major change after 34 years, people are quite optimistic. Because the Left had a tendency where they did not want industries to come and set up business here. Those tendencies and those mindsets are going to change and people will think that Bengal is again going to be a capitalist city,” Ashika Stock Brokers’ Research Head Paras Bothra said.
Similarly, Kolkata-based power generating company CESC’s stock went up by 2.11 per cent to settle at Rs 288.45, while state-run Coal India ended 1.43 per cent higher at Rs 386.75.
Auto-battery maker Exide Industries climbed 2.79 per cent to settle at Rs 162.25, while SREI Infrastructure Finance rose by 0.24 per cent to close at Rs Rs 41.20.
Analysts said that this win has given a ray of hope to the investors that business opportunities will be encouraged in West Bengal.
“The market was very receptive to the election results. It gained momentum with the Congress wining in Assam, Kerala and its ally TMC in West Bengal. We think it would strengthen the ruling coalition and would provide stability at the centre. The market is oversold and hence, we feel it would look up in the short term,” Motilal Oswal Financial Services Ltd CMD Motilal Oswal said.
The Mamata Banerjee-led Trinamool Congress had a historic win over CPI(M)-led Left Front which was in power in the state for last 34 years.
Meanwhile, the BSE 30-share Sensex ended 195.49 points higher at 18,531.28.