Karnataka Election results: BJP emerges largest party; as investors cheer, these 21 stocks jump up to 20%

In the second half of Tuesday’s trading session, the benchmark indices Sensex and Nifty 50 are trading mostly flat, however, buying sentiment really got a big boost today due to the likely outcome in Karnataka Elections. This state’s election was held on May 12, and results came in today which has indicated a victory for the Bharatiya Janata Party (BJP) as they are now leading in 106 seats, and Congress in 75 even as JDS is leading in 39.  This is a dramatic comeback for the BJP, which could win merely 40 seats in the last assembly polls five years ago, but there is a catch - the party has not been able to get a simple majority. This dented the markets later in the day with the Sensex shedding the massive gains it made to finally end in the red at 35,543.94, down by 12.77 pts! 

During the market hours, the likelihood of the BJP win was positively accepted by investors, so much so, that Sensex has gained by over 436 points and a high of 35,993.53 today. Even Nifty 50 saw increase of 122 points with a high of 10,929.20 during the day. 

With this blockbuster performance of benchmark indices, index like small cap, midcap and many more saw good sentiments in their valuation from investors. 

Interestingly, there were a list of 21 stocks from different sectors who performed really well during the trading session. Let’s have a look at them. 

On the top spot was Rakesh Jhunjhunwala holding, The Mandhana Retail Ventures which has surged by a whopping 19.94% today with an intraday high of Rs 86.30 per piece. This company performed well today, as from May 1 till May 14, the company has tumbled by nearly 31%. 

This was followed by stock price of companies like Dr Lal Pathlabs with 15.44% rise, BF Investment up 13.34%, BF Utilities above 12.91%, VMart higher by 11.81% and BEML surging by 10.71%. 

Other companies that saw gains were - Suven Life (7.94%), Ducon Technologies (7.21%), Hitech Corp (7.14%), BK Kashyap and Sons (7.31%), Dilip Buildcon (9.28%), Sanghi Industries (9.83%), Mphasis (6.69%), The Phoenix Mills (6.86%) and Jindal Saw (6.73%). 

Sanjeev Prasad, Anindya Bhowmik and Sunita Baldawa analysts at Kotak Institutional Equities said, “ A victory for the BJP will be received well by the market but a narrow defeat will not dent the market’s optimism regarding the BJP’s chances in the general elections next year.”

The trio added, “The market has pinned its hopes on earnings recovery and largely ignored the deterioration in the macro, which may weigh on heady multiples.”

Dhirendra Tiwari and Dipojjal Saha analysts at Antique Broking said, “We note that (1) exit polls have a chequered history, especially in predicting outcomes of multi-party contests (e.g. UP in 2017) (2) a 80-100 range seat by BJP is possibly baked into expectations and thus markets will be agnostic to such an event (3) a majority for BJP will be a shot in the arm for the markets and positive for risk-on sentiments- cyclicals, INR and 10 yr yields. 

The duo explained, “From a sector perspective, we continue to maintain that it will be a bottom-up market with no sweeping generalisations possible across sectors. We retain our positive bias for pvt retail banks and IT (given the sector is a good hedge against volatility).”