Investors Reap Rich Gains As Poll-Related Consumption Stocks Spurt
Makers of automobiles, including two-wheelers, cars, jeeps, sports utility vehicles (SUVs) and trucks, are said to benefit from poll managers spending big bucks on mobilising people for rallies. Hero Motocorp, TVS Motor, Maruti Suzuki, Force Motors and Eicher Motors have seen share prices spurting by 10-50 per cent in just a month.
Shares of breweries and distilleries are also witnessing good demand. Political parties as well as individual candidates are known to open their purses for luring voters.
Besides, tobacco products like cigarettes, distribution of free liquor is rampant in many rural and semi-urban areas in the run-up to actual polling day.
Investors seem to be betting on this trend and shares in Empee Distilleries, Globus Spirits and Som Distilleries have outperformed Sensex in the past one month. Tilaknagar Industries has given around 10 per cent gains. Shares in United Spirits, the most popular among them, has shot up by 14 per cent in the same period.
The demand for non-alcoholic beverages is not far behind. Tea and coffee distributed at political gatherings, give a short term boost to firms making the raw materials.
With political rallies happening in full swing across the nation and numbers expected to rise as polls near, demand for paper, electrical equipment and bottled water is also surging.
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