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Modi’s Grand Hindu Temple Plan Creates Winners in Stock Market

In Europe
January 20, 2024

(Bloomberg) — A bunch of small stocks expected to gain big from the opening of a controversial Hindu temple in India have emerged as winners.

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Shares of companies linked to the development of Ayodhya have risen on the prospects of the temple town becoming a religious tourism destination. Praveg Ltd., which has set up luxury tents near Ayodhya, and Allied Digital Services Ltd., which got a contract for CCTV surveillance network, have both soared more than 55% in the last one month. Kamat Hotels India Ltd. gained about 35% during the period.

Prime Minister Narendra Modi will inaugurate the temple devoted to the Hindu god-king Ram in the city situated in the northern Uttar Pradesh state on Monday. The site is a centerpiece of a multi-billion dollar project to develop pilgrimage and tourism in the area. A new airport and revamped train station opened last month, while hotels, retailers and banks are also looking to expand.

READ: Modi Unveils $1.3 Billion Projects In Disputed Temple City

Praveg said it is already witnessing “a rush among travel agents and devotees” for its Ayodhya site ahead of the inauguration. The contract in Ayodhya brought Allied Digital into limelight, said Vaibhav Vidwani, an analyst with brokerage Bonanza Portfolio Ltd. “It can help it bid for similar projects,” he said.

A push to revamp infrastructure around the temple will help transform the country’s most populous state. Billionaires Mukesh Ambani and Gautam Adani are among those invited to attend the event, highlighting the focus and attention the city’s infrastructure is likely to get.

READ: What India’s Ram Temple Means for Hindus and Muslims: QuickTake

“You can look at the number of new airports in the region or the expansion of business — it all points toward sustained growth,” Sukumar Rajah, director of portfolio management at Franklin Templeton Emerging Markets Equity, said. He expects Uttar Pradesh to emerge as a source of major travel and business activity in the coming years.

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