Assembly election results 2021: Impact on Dalal Street
In late noon trade, indices rebounded sharply as Sensex was up 39 points to 48,821 while the Nifty was at 14,659 rising 28 points.
Assembly election results 2021 for West Bengal, Assam, Tamil Nadu, Kerala and Puducherry were declared on May 2. The Trinamool Congress (TMC) registered a landslide victory in West Bengal while DMK in Tamil Nadu and Left-led LDF in Kerala also emerged victorious.
So, how did the stock markets react to it?
Benchmark indices tanked around 1.5% in the opening trade of May 3, but in late noon trade market rebounded sharply as Sensex was up 39 points to 48,821 while Nifty was at 14,659, rising 28 points.
“Although the market will be disappointed with BJP’s inability to breach TMC’s citadel, it will take comfort that the BJP has been able to retain power in Assam by overcoming the oft-repeated assertion of its critics that it fares poorly in defending States where it is in power,” said Ajay Bodke, an independent market analyst and commentator.
West Bengal-based companies gave a thumbs up to TMC forming the government for a third consecutive term. Stocks like Graphite India (up 1.31%), Berger Paints (up 1.14%), Orient Cement (up 3.52%), Himadri Speciality Chemical (up 1.23%), Phillips Carbon Black (0.51%), Century Plyboards (0.87%), Mcleod Russel (up 3.09%), Dhunseri Tea & Industries (up 4.51%), CESC (up 4.24%), Goodricke Group (up 7.64%), Hindustan Copper (up 0.61%), rallied in the market.
On the other hand, other Bengal-based stocks like ITC (down 1%), Coal India (down 1.28%), Balmer Lawrie (down 0.90%), Magma Fincorp (down 0.59%), Emami (down 1.02%), SREI Infrastructure Finance (down 3.47%), Shree Cements (down 0.15%) were trading with losses.
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