Power stocks gain as much as 6.3 per cent on Narendra Modi wave

Mumbai: Shares of companies related to power sector saw immense buying today, surging as much as 6.3 per cent, on hopes of a big push under the incoming Narendra Modi-led government. Tata Power surged 6.33 per cent, while NTPC's scrip gained 4.39 per cent on the BSE.

Shares of Power Grid Corp of India was up 4.10 per cent, while Reliance Power jumped 3.62 per cent, Bharat Heavy Electricals (3.28 per cent), Reliance Infrastructure (2.31 per cent) and Adani Power (1.79 per cent).

Led by the gains in these stocks, the BSE power index surged 3.66 per cent to 2,287.46. Experts said that stocks rose on hopes that Narendra Modi-led NDA government is likely to harness solar power and give a fillip to development of offshore wind energy.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Local equities continued to trade strong. It is expected that the new government will form business friendly economic policies which will remove bottlenecks and will eventually help the economy to grow." In the stock market, the Sensex gained 318.95 points or 1.31 per cent to settle at 24,693.35.