Jai Corp surges post-Maharashtra polls; strong volumes drive rally

Shares of Jai Corp and Reliance Industrial Infrastructure Ltd (RIIL) witnessed significant gains on Monday, rallying as much as 20 percent during intraday trade on the BSE. The surge followed the BJP-led Mahayuti alliance's decisive win in the Maharashtra assembly elections, securing 235 seats, bolstering market sentiment.

Jai Corp’s robust rally

Jai Corp's stock hit the upper circuit at Rs 356.85, marking a 20 percent jump, driven by trading volumes nearly seven times the daily average. By 2:30 PM, the stock was trading 19 percent higher at Rs 354, outperforming the Sensex’s 1.1 percent rise. Despite hitting its 52-week high of Rs 438 in July 2024, the stock’s renewed momentum reflects optimism surrounding its ventures in real estate, SEZs, and ports, including Navi Mumbai Integrated Industrial Area (NMIIA) and Rewas Port projects.

Jai Corp’s projects in Maharashtra, including 4,600 acres of land acquisitions for MSEZ and leases for intertidal land at Rewas, are expected to gain traction with supportive policy changes.

Stock in Action 

क्यों आई Jai Corp और RIIL में जबरदस्त तेजी?

महायुति सरकार का कौन-सा है ‘Dream Project’?@AnilSinghvi_ #MarketUpdate #ElectionResults #StockMarket pic.twitter.com/rfU1NdtALg

— Zee Business (@ZeeBusiness) November 25, 2024

RIIL surges amid heavy volumes

Shares of RIIL jumped 17 percent to Rs 1,210 on the BSE, supported by an eightfold increase in trading volumes. The logistics provider, engaged in infrastructure services for petroleum and water transportation, has seen consistent investor interest due to its focus on critical infrastructure. RIIL had earlier hit its 52-week high of Rs 1,604 in January 2024.

Analysts optimistic but cautious

The BJP’s victory in Maharashtra is seen as a boost for development-driven policies, especially in infrastructure and industrial projects. Analysts believe the results could accelerate capex spending by the government and improve order inflows in key sectors like railways and defense. However, lingering challenges like weak consumption demand and fiscal constraints could temper growth.

Investors are advised to monitor quality midcap stocks with strong fundamentals, particularly in sectors set to benefit from government spending. Both Jai Corp and RIIL remain on the radar for their growth potential linked to Maharashtra's economic landscape.