Shares of power and infrastructure companies were in limelight today, surging up to 20 per cent, after the BJP-led NDA won a thumping victory in the Lok Sabha elections.
GVK Power & Infrastructure's stock zoomed 20 per cent, while Lanco Infratech Ltd surged 19.93 per cent, GMR Infrastructure (16.96 per cent) and Jaiprakash Associates (14.79 per cent) on the BSE.
Shares of Suzlon Energy shot-up by 19.81 per cent, while Bharat Heavy Electricals Ltd jumped 16.94 per cent, NTPC (10.35 per cent) and Adani Power (7.64 per cent).
Led by the strong gains in these stocks, the BSE Power index gained 10.15
per cent to 2,148.24.
Analysts said that there is a lot of hope from the new government to push through reforms in the infrastructure and power sectors.
The landslide victory of BJP-led NDA in the elections is credit positive for India as a stable central government is expected to address the country's economic challenges, a Moody's report today.
"Moody's also considers that the completion of the election will allow stalled policies relating to the corporate and infrastructure sectors to resume, a credit positive for the country's corporates," Moody's VP and Senior Credit Officer Vikas Halan said.
He said a closer co-ordination between the central and state governments on clearances for mega projects and land use, two proposals outlined in the BJP's manifesto, would address investment delays.