A review of 24 listed stocks identified by Indian National Congress leader Rahul Gandhi in his recent election affidavit reveals that the market value of his portfolio had fully recovered by Friday, June 7, two days after the massive crash that wiped out more than 30 trillion rupees from the market capitalization of India’s listed stocks.
Some of his key holdings include Infosys, LTI Mindtree, Tata Consultancy Services, ITC, Hindustan Unilever, Nestle India, Asian Paints and Pidilite Industries Ltd. Market veterans describe his stock selection as a mix of large cap index stocks and a preference for defensive sectors.
Assuming there has been no change in his shareholding pattern since his disclosure in the Lok Sabha election affidavit, Gandhi’s portfolio rose in value by Rs 3.45 lakh crore on Monday, June 3, before falling by Rs 4.08 lakh crore the next day when the actual election results were announced. Since then, in line with the overall market recovery, his portfolio continued to rise, rising by Rs 1.39 lakh crore on June 5 and Rs 1.78 lakh crore the following day. By Friday, the value of his portfolio had risen by a further Rs 1.023 lakh crore to Rs 4.60 lakh crore. In total, the value of his portfolio has increased by Rs 2.53 lakh crore since May 31, up 5.76%.
Stocks were seen rising on Friday following the Reserve Bank of India’s latest economic growth forecast.
The rise in Gandhi’s portfolio is in sync with market movements seen in the aftermath of the exit polls and election results, which had projected 350-410 seats for the BJP-led National Democratic Alliance. On hopes of clear support and political continuity, India’s benchmark indices, including the BSE Sensex, rose 3.39% on June 3, while the Nifty surged 3.25%. However, after the ruling coalition’s reversal, both indexes fell sharply the next day.
The Indian National Congress noted that Prime Minister Narendra Modi, Home Minister Amit Shah and other cabinet members said in interviews during the election campaign that stock prices would rise due to strong support for the ruling party. “If you buy before June 4, stock prices will soar,” Shah said in a television interview.
Meanwhile, Shah’s equity portfolio, which includes over 180 stocks, was worth Rs 174.3 crore in March. His major holdings include Hindustan Unilever, MRF, Colgate-Palmolive (India), Procter & Gamble Hygiene and Healthcare and ABB India. He also had shares in Berger Paints, UCO Bank, Tata Power, Vedanta, GAIL and Anant Raj. HUL rose 1.15 per cent after the exit polls, 5.96 per cent on election day and 4.26 per cent on Thursday as markets are pricing in a consumption boost as part of the new government’s economic policies.
In the case of MRF, its shares fell 4 percent on the day the results were announced but rose 5 percent on Thursday on hopes that the NDA would come to power for a third time. Shah’s other major holdings were also volatile as the market had a knee-jerk reaction to the election results.
Reacting to this, Bharatiya Janata Party (BJP) leader Piyush Goyal said Gandhi’s allegations were “baseless”. “Rahul Gandhi is upset over the opposition’s defeat and is hatching a conspiracy to mislead investors,” he said at a press conference.
“When the market was rising in April and May, foreigners sold in the market and Indian investors took advantage and bought. It is Indian investors who have benefited from the rise in these two months. On the day of the exit polls, foreigners bought high and Indian investors sold high and benefited. Foreigners bought Rs 6,850 crore in retail at high and Indian investors took advantage and the next day, on the 4th, when the results came out and the market fell, foreign investors sold low and Indian investors bought with the belief that a Modi government would come to power and would take advantage of it. So, foreigners bought high and sold low and Indian investors sold high and bought low,” Goyal said.
The BJP leader added that Indian investors have made profits during this period too. “Nobody has suffered losses. Rahul Gandhi is talking about Rs 3 lakh crore. People don’t trust Rahul Gandhi because they don’t understand that it is valuation. Valuations don’t mean anything. What matters is buying and selling. And foreigners have suffered losses there. Indian investors have made profits. So, Indian retail investors have also made profits during this period,” he added.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are advised to consult a qualified financial advisor before taking any investment decisions.
