Jaiprakash, Reliance stocks recover losses, end with gains

Shares of companies with significant business exposure to Uttar Pradesh rallied in the stock market today, as investors put their bet on favourable policy regime from the new government to be formed by Samajwadi Party.

Market analysts said they expect the new government to come up with mostly pro-business policies, while the companies from sugar and power sectors could benefit more from the change of guard in the state.

Shares of Anil Ambani-led Reliance Group companies, Reliance Power and Reliance Infrastructure, rallied by up to 6% in a sluggish market.

Reliance Power was up 5.65% at Rs 132.85, while Reliance Infra gained 1.64% to close at Rs 628.70 on the BSE.

Other group companies also saw some buying. Reliance Broadcast Network ended 0.37% higher, Reliance Capital rose by 1.59%, Reliance Communications was up 0.76% and Reliance MediaWorks climbed 0.28%.

On the other hand, Jaiprakash group companies -- Jaiprakash Associates, Jaiprakash Power Ventures and Jaypee Infratech -- saw renewed buying interest after falling in the last two trading sessions.

Jaiprakash Power Ventures closed 2.91% higher at Rs 40.70, while Jaiprakash Associates surged by 7.04% at RS 74.50 and Jaypee Infratech was up 1.87% at Rs 43.65.

The Mulayam Singh Yadav-led party captured 224 seats in the 403-member House.

In the broader market, the BSE benchmark Sensex closed at 17,145.52, down 27.77 points.