“Jaypee” immune to bicycles and elephants?

Many people investing in the real estate in Noida must have been dissuaded by brokers and laymen alike to not to buy a Jaypee property because of its close connections with the Mayawati fraternity. It is/was believed that the group has benefitted disproportionately from Mayawati’s regime and will likely go in for a tailspin once the Yadav’s take over.

As a company that is listed on the stock exchange and one that does not take any money in cash from its buyers (unlike the norm of 40-50% in black) the facts suggested a level of transparency. However, the behind-the-scene realities were/are as good as anybody’s guess.

With the elections now over and SP firmly in place the stock markets seem to be indicating that the fears related to the vulnerability of Jaypee to regimes were unfounded.

Twenty days after the victory of the SP, the Jaypee stocks have risen broadly. There were some fluctuations in the first two days of the election results but those seem to have been clearly rested now.

What is not yet settled though is the explanation for this neat outcome for Jaypee? People are wondering if it is actually a company with great fundamentals or if it has the skill of manoeuvring across political parties.