Monday, July 07, 2014

Why are Gujarati stocks going up?

After all the noise about the national elections for the first half of 2014, the government has slowly tried to do two things at once i.e. 'take decisions' and 'appear to take decisions', in the first few days after assuming office. 

Sure enough, we have a man from Gujarat, with very humble beginnings, has made it big to the national stage and is now the Prime Minister of India. His government is evidently trying to make all the right noises about policy, economic revival, resurrection of the job creation policies, leveraging technology and trying to run the government with the power of 'lean'.

But, what has caught my interest in the last 2 months is the manner in which almost every stock of every company that is headquartered in Gujarat has been going in only one direction in the last many months. And that direction, is a clear, decisive upward movement. I have wondered why.

Let me illustrate with a few examples of how the Gujarati stocks have move during the period 1 January, 2014 to 30 June, 2014:
  • Arvind Mills is up 68%
  • Adani Enterprises is up 69%
  • Adani Ports is up 56%
  • Adani Power is up 59%
  • Axis Bank is up 48%
  • ...etc
Before I proceed, let me add that I don't have any bias in selecting Gujarati companies starting with the alphabet A. It is just a random selection!

What I find very interesting is that, while many of the indices of which these companies are a part of may not have done as well as these stocks have, there is a clear Modi factor that has prevailed in the cases illustrated above. That only adds credence to the long-held theoretical belief that the stock market has a large part of market sentiment attached to it, irrespective of valuations, stock analysis and experts on television channels. And by the way, in the case of Axis Bank above, the bank is actually only registered in Gujarat, even though its corporate headquarters is in Mumbai!

The same experts that I refer to above, believe that there is more upside to the overall economy. I would only hazard a guess that many of these stocks from Gujarat will continue to have their upswing, irrespective of where the rest of the economy goes. It might just be worth it, if one were to buy into all these Gujarati-based stocks in the next 5 years of the current government! 

On a more serious note, if such political sentiment is what is required for India to progress, have a wonderful capital market, and continue to be the preferred destination for every foreign institutional investor, I have no problems with it. Progress is what we need in order for us to realise the so-called potential that we are perceived to have in this century. Hope we make the first steps to realising our great potential in the coming 5 years. 


ninest123 said...

ninest123 16.02
nike air max, tiffany and co, michael kors outlet, tiffany jewelry, louboutin, polo ralph lauren outlet, michael kors outlet, longchamp outlet, prada outlet, replica watches, burberry, louboutin outlet, nike free, christian louboutin outlet, prada handbags, ugg boots, louis vuitton, louis vuitton outlet, ugg boots, oakley sunglasses, michael kors, replica watches, chanel handbags, louis vuitton outlet, ray ban sunglasses, michael kors outlet, ray ban sunglasses, burberry outlet online, ugg boots, louis vuitton, gucci outlet, nike outlet, jordan shoes, polo ralph lauren outlet, tory burch outlet, louis vuitton, ray ban sunglasses, cheap oakley sunglasses, ugg boots, michael kors outlet, longchamp outlet, oakley sunglasses, michael kors outlet, longchamp, louboutin shoes, oakley sunglasses, oakley sunglasses, nike air max, uggs on sale

ninest123 said...

nike roshe, vanessa bruno, nike air max, true religion jeans, sac guess, nike huarache, nike blazer, coach purses, burberry, longchamp pas cher, ralph lauren pas cher, lacoste pas cher, ralph lauren uk, nike roshe run, true religion jeans, true religion jeans, tn pas cher, michael kors, abercrombie and fitch, air max, nike free, ray ban pas cher, hollister pas cher, michael kors, air jordan pas cher, michael kors, lululemon, true religion outlet, vans pas cher, mulberry, north face, nike free run uk, sac longchamp, air force, hollister, nike air max, nike trainers, ray ban uk, nike air max, new balance pas cher, michael kors, timberland, replica handbags, coach outlet, longchamp, hogan, louboutin pas cher, north face, converse pas cher, hermes, oakley pas cher

ninest123 said...

nike air max, vans, instyler, chi flat iron, valentino shoes, giuseppe zanotti, babyliss, gucci, bottega veneta, baseball bats, mac cosmetics, oakley, celine handbags, iphone 6s plus cases, lululemon, iphone cases, converse, wedding dresses, abercrombie and fitch, birkin bag, north face outlet, timberland boots, new balance, mcm handbags, mont blanc, insanity workout, herve leger, s5 cases, nfl jerseys, ferragamo shoes, iphone 6 cases, ipad cases, iphone 6s cases, ghd, hollister, louboutin, reebok shoes, soccer shoes, hollister, vans shoes, ray ban, iphone 6 plus cases, beats by dre, nike roshe, asics running shoes, jimmy choo shoes, iphone 5s cases, nike air max, p90x workout, soccer jerseys, ralph lauren, north face outlet

ninest123 said...

moncler, louis vuitton, pandora jewelry, ugg pas cher, barbour jackets, bottes ugg, wedding dresses, canada goose uk, canada goose outlet, moncler, pandora jewelry, juicy couture outlet, thomas sabo, louis vuitton, pandora charms, canada goose, sac louis vuitton pas cher, swarovski crystal, moncler, canada goose, replica watches, links of london, moncler, toms shoes, louis vuitton, moncler outlet, barbour, moncler, ugg,ugg australia,ugg italia, hollister, swarovski, coach outlet, doudoune canada goose, pandora charms, marc jacobs, canada goose outlet, canada goose, juicy couture outlet, louis vuitton, lancel, montre pas cher, doke gabbana outlet, supra shoes, ugg,uggs,uggs canada, moncler, moncler, converse outlet, ugg boots uk, karen millen, canada goose
ninest123 16.02