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Up to 5,500% rally under BJP govt! Do you own any of these stocks?

BSE Midcap index advanced 69 per cent in the past five years till May 17, 2019.

, ETMarkets.com|
Updated: May 22, 2019, 06.25 PM IST
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NEW DELHI: Going by exit poll results Narendra Modi-led NDA government is all likely to come back to power with a resounding victory in general elections 2019. It has been nearly five years since Modi took oath as Prime Minister on May 26, 2014. During this period the benchmark equity indices Sensex and Nifty rallied over 50 per cent.

However, the period also remained highly volatile for Indian equity market because of reformist measures such as demonetisation, implementation of goods and services tax, Insolvency and Bankruptcy Code and Real Estate Regulation and Development Act.

Nearly 800 stocks on BSE managed to double investors’ wealth in the last five years.

Stocks such as Sadhana Nitro Chem, Tasty Bites Eatables and Stylam Industries rallied 5,605 per cent, 3,392 per cent and 2,391 per cent, respectively, during May 26, 2014 and May 17, 2019.

Minda Industries, Olectra Greentech, Bajaj Finance, Kingfa Science & Technologies and Apollo Pipes and Indiabulls Ventures also soared more than 1,000 per cent during the same period.

The BSE Midcap and Smallcap index advanced 69 per cent and 56 per cent in the past five years till May 17, 2019.

Stocks that rallied over 1000%

Blue chip firms including HDFC Bank, Reliance Industries, Maruti Suzuki, Tata Consultancy Services, Infosys and Maruti Suzuki gained 196 per cent, 130 per cent, 187 per cent, 95 per cent and 88 per cent, respectively, during the same period.

Sensex stocks

Except BSE Telecom (down 27 per cent), Metal (down 16 per cent) and Power (down 16 per cent), all other major sectoral indices on BSE gained up to 90 per cent.

The BSE Bankex, IT, FMCG, Healthcare and Oil and Gas index advanced 89 per cent, 80 per cent, 70 per cent, 32 per cent and 29 per cent, respectively. However, the BSE Realty index (up 4 per cent) stood almost flat since May 26, 2014.

Sectoral chart

The 30-share Sensex rallied over 1,000 points on Monday, while the Nifty index reclaimed BSE Sensex and Nifty index reclaimed 11,650-level after exit poll results that showed the ruling NDA is likely to win the general elections.

The rupee too advanced over 75 paise against the US dollar.

Majority of exit polls on Sunday predicted another term for PM Modi, with some of them projecting that BJP-led NDA will get more than 300 seats to comfortably cross the majority mark of 272 in Lok Sabha.

Exit poll table

“Prediction of continuance of stable government with majority or near majority augurs well from reforms and policy agenda perspective. It removes a key overhang from the market narrative – potential of a hung verdict, formation of a third front government with no major national party at the helm,” said Gautam Duggad, Head of Research- Institutional Equities, MOFSL.

In the largecap space, Duggad is positive on ICICI Bank, SBI, Maruti Suzuki, Ultratech, L&T, Titan Company, Bharti Airtel, Coal India, Infosys and HDFC Life.

However, Federal Bank, LIC Housing Finance, Indian Hotels, Siemens, Crompton Consumer, Ashoka Buildcon, JSPL and Godrej Agrovet are among his top midcap picks.

The results of the seven-phase polls will come out on Thursday.

Ajay Bodke, CEO PMS, Prabhudas Lilladher said, “Institutional investors will look forward to the fillip to economic growth provided by structural reforms strongly pushed by Modi such as GST, IBC, RERA and DBT, among others.”
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