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There's more to buzz in Guj-based cos than Mr. Modi

Stocks of a lot of Gujarat-based companies are buzzing after Narendra Modi's victory in the Gujarat State elections yesterday. But what seems to be fuelling the buzz is that a lot of the state-owned firms are rumoured to be lined up for disinvestment and this victory may just push that process forward, reports CNBC-TV18 analyst Varinder Bansal.

Midcap Radar at 01:30 pm

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Stocks of a lot of Gujarat-based companies are buzzing after 's victory in the Gujarat State elections yesterday. But what seems to be fuelling the buzz is that a lot of the state-owned firms are rumoured to be lined up for disinvestment and this victory may just push that process forward, reports CNBC-TV18 analyst Varinder Bansal.

Varinder clarifies that Gujarat Alkali , Gujarat Industrial Power , GHCL , GNFC , Gujarat State Fertilizers , GMDC , Gujarat State Finance have been buzzing based on rumours circulating over the past one year over likely divestments and not just post the election results.

He said, "None of the managements have accepted this rumour; they say this is a function purely of the state and they will come ahead and divulge if there are any plans."

However, there is a positive sentiment coming across from Mr. Modi's election as CM, for sure. The fact that this is his third time in office, if nothing else, it will at least help the pace of divestments, if they happen.

Some of these companies are also in F&O, which is helping them have much higher gains.

He explains that, "Apart from the divestment process, there are other companies, which are buzzing on a redevelopment theory. GSPL and Mundra Port don't have any divestment buzz, but have been buzzing on the basis of the Modi government, which will help them to go ahead with more economic reforms."

With GSPL also, the government has been exploring more opportunities in the gas pipeline area. So these companies are buzzing and the buzz is not new, it has been going on for a long time.