Seven stocks with Bengal exposure posted double-digit gains in two days following the election verdict. Dhunseri Tea and IFB Agro Industries led with 22% and 27% gains respectively, while Senco Gold surged 13%, Balgopal Commercial 12%, Emami Realty 10%, Mcleod Russel 9%, and Bazaar Style Retail 6%.
“The market mood is positive as one more state like Bengal, which has got significant growth potential, would now be ruled by the BJP,” Sunny Agrawal, Head of Fundamental Research at SBI Securities, told ET Markets. “But fundamentally, things will improve only gradually. The true impact will be felt only in the long term.”
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Nomura struck a cautiously optimistic note, highlighting decades of underperformance. “West Bengal has struggled with industrialisation throughout its modern history, despite its easy access to ports, raw material and markets, primarily impacted by governance concerns of the Left and TMC,” the brokerage said. “The BJP’s victory in WB could lead to expectations of improved governance, ease of doing business, enhanced infrastructure spending with central government assistance and better centre-state coordination on various schemes. A turnaround in WB’s economic prospects with higher levels of private investment and higher incomes is a potential medium-term tailwind.”
Ambareesh Baliga, an independent market analyst, sees a clear sectoral playbook emerging. “It will lead to an industry comeback, more focused growth in Bengal. After several decades, Bengal will get the same government as the centre,” he said. “Sectors like real estate will benefit. It won’t be untouchable for national players anymore.”He flagged that while listed real estate players with exposure to Bengal are limited, some carry land banks in the state. Companies that have started or have significant operations in Bengal stand to gain from the changing political climate. Infrastructure plays in roads and construction are also on his watchlist.JM Financial echoed the development narrative while injecting a note of caution. “A decisive mandate in West Bengal in favour of a pro-growth party would ideally drive capex activity in the state and improve ease of doing business, aligning with the Prime Minister’s ‘Poriborton’ push,” the brokerage said. “We expect incremental focus on manufacturing, which would boost employment opportunities and gradually improve the fiscal deficit. However, despite visibility of incremental capex demand in West Bengal, there is a risk of curtailment in central government capex due to the likely fiscal impact of the West Asia crisis.”Motilal Oswal underscored the political significance by saying that the election verdict will be viewed positively by the market, not only for the message of a progressive change but more from the lens of policy continuity, as the hands of the ruling NDA have become stronger, and any faint memories and concerns of the 2024 Lok Sabha setback have been convincingly wiped.
“The results have longer-term implications on the economic growth of involved states, especially the momentous transition for West Bengal, which will play out over the years. Once the results are digested and their positive undercurrent well noted, markets will quickly shift focus to the more immediate developments in the West Asia war and the 4QFY26 earnings season.”
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