In a resounding victory, the Telugu Desam Party (TDP), in alliance with the Bharatiya Janata Party (BJP) and Jana Sena Party (JSP), returned to power in Andhra Pradesh by winning 164 out of 175 legislative assembly seats. This landslide win highlights the strong support for the coalition among voters.
N. Chandrababu Naidu’s return as Chief Minister has had a notable impact on the national stock market. Reports indicate that stocks associated with Chandrababu Naidu have outperformed those linked to Prime Minister Narendra Modi. In the eight trading sessions following the election results, stocks related to the Andhra Pradesh Chief Minister surged by approximately Rs 20,000 crores.
#NaraChandrababuNaidu was sworn in as Chief Minister of Andhra Pradesh.#ChandrababuNaiduAneNenu #AndhraPradesh pic.twitter.com/5S8t0TkyWt
— KLAPBOARD (@klapboardpost) June 12, 2024
While infrastructure and capital expenditure stocks connected to Prime Minister Modi also saw gains, they were overshadowed by the performance of stocks linked to Naidu. Among these, Heritage Foods, a company with which Chandrababu Naidu is closely associated, experienced remarkable growth. Before the election results, Heritage Foods shares were priced at Rs 424. After the announcement of the coalition’s victory, the shares reached a record high of Rs 661.25, later stabilizing at Rs 578. This impressive performance surpasses the growth seen in public sector undertaking (PSU) stocks influenced by Modi’s policies.
The election outcome and subsequent market trends underscore the confidence investors have in the new state government’s potential to drive economic growth and development. The TDP-BJP-JSP alliance’s decisive win is seen as a mandate for stability and progress, which is reflected in the robust performance of stocks tied to key figures within the coalition.
