Even as the broader markets showed some signs of cooling off after BJP's emphatic win, some infrastructure and capital goods stocks showed no signs of weariness.
The CNX Infra index was up 7.6 per cent in comparison to nearly 1 per cent rise in Nifty.
JP Power Ventures rose 25 per cent, IVRCL 20 per cent, Punj Lloyd 18.5 per cent, Rel Infra 17 per cent, and BHEL 16 per cent. Among capital goods stocks, BHEL rose 18 per cent while L&T rose 7.5 per cent. Investors are betting infrastructure development would remain one of the highest priorities of the new government.
G Chokkalingam, founder of Equinomics Research & Advisory, says some the rally in some of these infra stocks was expected as they were punished earlier. He however expressed caution over the rally in some of the highly leveraged companies.
Neyveli Lignite is one of his picks in this sector with target of Rs 120/share. He says that the company's high cash reserve, power sector reforms in Tamil Nadu and capacity expansion will help the power producer, he says.
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