Gujarat-based companies saw significant profit-booking in their stocks on Thursday, leading to up to 7% fall in shares on the Bombay Stock Exchange.
The shares of these companies had surged by around 10% in the last few trading sessions. While Adani Enterprises rose by 10% in the last five trading sessions (December 13-19), shares of Adani Power rose by 12 %, Arvind by 7% and Torrent Power by 8%.
The Sensex rose just 1% during the period. On Thursday, it fell by 22 points, or 0.1%, at 19,454.
“These stocks had risen in anticipation of Narendra Modi’s win,” said Sunil Jain, head, equity research, Nirmal Bang. “Today’s fall was a result of profit booking.”
“Movement in shares of Gujarat-based companies reflects the perception of investors who tend to associate companies with certain political parties,” said Rikesh Parikh, vice-president, markets, strategy and equities, Motilal Oswal Securities.
{{/usCountry}}“Movement in shares of Gujarat-based companies reflects the perception of investors who tend to associate companies with certain political parties,” said Rikesh Parikh, vice-president, markets, strategy and equities, Motilal Oswal Securities.
{{/usCountry}}However, shares of Adani Enterprises also witnessed selling pressure on Thursday due to promoters’ plan to sell 23 million shares through an offer for sale on Friday, disappointing investors.