ewsba.se
The end of a 15-year political regime in West Bengal has rekindled investor interest in companies headquartered in the state, triggering a sharp rally in select stocks on expectations of a policy reset.
On 4 May, the Bharatiya Janata Party (BJP) registered a watershed win in the 294-member assembly, unseating the Mamata Banerjee-led Trinamool Congress (TMC) and ending its 15-year rule.
On the back of expectations of improved industrial policy clarity and faster clearances, shares of RP Sanjiv Goenka Group companies, Bandhan Bank, Emami Limited and others saw a sharp move in prices.
However, analysts caution that the rally reflects anticipatory positioning rather than earnings visibility.
“The market is largely anticipatory positioning, not earnings-led yet,” said Ajay Bagga, a market expert. “Any regime shift that improves industrial policy clarity and capex visibility can expand earnings multiples but sustainability depends entirely on execution, not sentiment,” Bagga added.
Shares of Kolkata-based Bandhan Bank touched an all-time high of ₹212.5 on Monday, emerging as the top gainer in the Nifty Private Bank pack that day.
As of FY26, West Bengal accounted for 24% of Bandhan Bank’s total loans and advances—the highest among all states. The state also contributed 40% of the bank’s total deposits.
RP Sanjiv Goenka Group companies—power distribution firm CESC Limited and PCBL Chemical Limited—also saw their shares touch all-time highs of ₹204.4 and ₹312.75, respectively, on Monday.
While PCBL does not disclose state-wise revenue contribution from West Bengal, its Durgapur facility accounts for 16% of its total carbon black manufacturing capacity as of FY25, the latest data available. The Durgapur plant ranks third after Mundra in Gujarat and Mahad and Pirangut in Maharashtra.
Shares of Emami Limited rose 2.6% on Monday, making it the second-highest mover in the Nifty FMCG index.
For markets, the signal is progression of reform direction and faster centre-state coordination that may translate into execution on land, labour, and industrial policy in states like West Bengal, Bagga said.
BJP’s victory in West Bengal expands its national footprint. Post-election, the BJP and its allies now control 21 of India’s 36 states and union territories.
“Expansion of BJP’s eastern footprint in a big state ahead may also accelerate administrative clearances for central schemes in the state with better Centre-State alignment and could be positive for the State’s industrial policy & manufacturing in the medium term,” said Madhavi Arora, chief economist, Emkay Global Financial Services.
“The immediate challenge lies in maintaining fiscal discipline against the backdrop of populist-driven spending trends, which have proven to be a winning electoral formula, but threaten the long-term fiscal health of states and their productive spending,” Arora said.
Despite West Bengal's geographical, vicinity to Bay of Bengal, vast swathe of arable land, mineral reserves, high quality human capital, a strategic access to multiple states, labor pool, and a rich history of commercial vigour and entrepreneurship of trading community, the image of West Bengal had degenerated into a business-unfriendly state over the past decades under 50 years of communist rule, said Motilal Oswal in a report dated 5 May.
"This should now change, and we believe this is the biggest strategic, long-term transition that will accrue over the years. West Bengal had been lagging national averages in growth, investments, and several other vital economic parameters. And the economic strengths of the state will emerge and should attract greater investments over the next five years," it added.
Srushti is a markets reporter at Mint. She writes on equity markets, and her areas of coverage range from brokers and exchanges to mutual funds and the fast-evolving alternatives space, including GIFT City, from the financial capital of India. She has an experience of over three years in journalism, and has previously worked at Moneycontrol. She has an undergraduate degree in mass communication and a postgraduate diploma in business and financial journalism from Asian College of Journalism, Chennai.<br><br>Srushti prefers meeting people from the industry over making calls. Her work aims to drive impact—her story on illegal gold imports, for instance, caught the government’s attention and contributed to a policy shift. She specialises in turning complex market data into clear, engaging stories so even her grandmother could understand futures and options.<br><br>Outside of the newsroom, she enjoys spending money on jewellery and watching thriller films—especially the kind that keep her awake at night. She spends 1.5 hours a day commuting in Mumbai locals, listening to horror podcasts on her way to work. She’s also very talkative—so reach out only if you have lots of time.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.