The Gujarat polls are telling on the financial fortunes of investors in State-run public enterprises, which have reported a slide in their prices in the range of 3-18 per cent over the past one month.

Known for its pro-industry stand, the BJP government in the State appeared to be on slippery ground following aggressive campaigning by the Congress and their political ally Patidar leader Hardik Patel.

Following the October-end declaration of elections, the top six listed Gujarat PSUs have seen a sustained decline in their stock prices.

The highest decline was seen in the share price of fertiliser major Gujarat State Fertilizers & Chemicals (GSFC) at 18 per cent, followed by Gujarat Narmada Valley Fertilizers & Chemicals and Gujarat Gas, which fell 13 and 12 per cent, respectively.

Profit-booking

According to brokerage houses, the nervousness surrounding Gujarat poll results, due on December 18, was visible in the stock prices of PSUs. “Investors are trying to book profit at higher levels of the stocks which had rallied over the past three months. Looking at the campaigning by both sides, investors are clueless on who will form the next government in the State. This is prompting them to cash out of their holdings in PSUs,” said Vaibhav Shah of Monarch Networth Capital in Ahmedabad.

Market participants point to Hardik Patel’s huge rallies, Congress Vice-President Rahul Gandhi’s high-pitched campaigning and factionalism in the BJP, all of which have created an uncertain political scenario in the State.

Of the six top listed companies, three have capitalisation of more than $1 billion each. As on December 5, GSFC had a market cap of ₹6,828 crore, Gujarat State Petronet ₹11,524 crore and Gujarat Gas ₹11,634 crore.

Polling for the State Assembly will be conducted in two phases — on December 9 and 14.

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