INSUBCONTINENT EXCLUSIVE:
MUMBAI: The stock market is currently in midst of a pre-election rally with benchmark indices gaining over 10 per cent since their lows in
The run-up has promoted market punters to take bets on stocks that could find favour of the new government
Both the national parties the Bharatiya Janata Party (BJP) and the Indian National Congress (INC) have already come out with their election
manifestos announcing their focus areas if they are voted to power
ET spoke to market participants on possible scenarios and the themes that could play out after the election results.
IF BJP COMES BACK TO
POWERThe BJP manifesto has emphasised extensively on infrastructure sector, especially roads
The incumbent party has promised capital investments to a tune of Rs 100 lakh crore in the infrastructure sector by 2024
receive a huge boost if the BJP comes back to power and companies in the sector which are not very highly leveraged could be good bets for
analysts who spoke with ET have said stocks such as Larsen and Toubro (LT), Sadbhav Engineering and Dilip Buildcon would be the biggest
beneficiaries of a push to infrastructure projects.
Market participants also feel corporate banking stocks such as ICICI Bank and Axis Bank
Gaurav Dua, head of research at Sharekhan
Dua also added that the NPA cycle of corporate banks seems to have peaked out implying healthier balance sheets for corporate
extensively on rural issues
Their plans include introduction of a special budget for farmers, formation of a special commission to look after agricultural development
They have also promised to revive the National Rural Employment Guarantee Act (NREGA), which could boost domestic consumption
Jubilant Food-Works, Marico and Varun Beverages could be the biggest beneficiaries of this consumption push.
Insurance and healthcare are
the sectors that could see traction irrespective of whether the BJP wins the election or the Congress
Both the parties have made big promises about improvement of healthcare system in India
While a return of the BJP would ensure continuity in schemes like Ayushman Bharat, the Congress has promised to make healthcare a guaranteed
SBI Life and ICICI Prudential are expected to be the rewarding stocks in the sector, according to analysts.
