Stocks to Benefit if BJP Wins :The last phase of the Lok Sabha elections is on June 1, after which counting is on June 4. It will be decided on June 4 whose government is going to be formed. However, most estimates are indicating the return of the NDA government (NDA Govt Comeback) under the leadership of Narendra Modi, in which some seats may be more or less. Brokerage house Phillip Capital has also released a report in this regard and has told that if the Modi government (Narendra Modi Govt) returns, then which stocks of which sectors can rise. The brokerage house has released 3 scenarios of the election results. At the same time, keeping in mind the investment period of 1 year and 2 to 3 years, information has been given about some stocks, which can get benefit on the arrival of Modi government.
Nifty can break the level of 26500 in 18 months, NDA’s return will give a boost, make a multicap strategy in investment
Base Case Scenario
In the base case scenario, BJP is expected to win 290-300 seats, while NDA may get 330-340 seats. In this case, the brokerage house is positive for equity, earnings, economy, policy continuity and execution in both near term and long term.
Bullish Scenario
BJP can get more than 325 seats and NDA can get more than 360 seats. In this case, there will be a strong rally in ECP.
The Bearish Case
In the bearish case, it is possible that BJP may not get majority on its own, but NDA may form the government under the leadership of Narendra Modi. In such a case, selling may be seen in the equity market first. But if the Modi government remains stable in the future, then the equity market will strengthen again in the coming days. In such a situation, investment will be advised on every purchase. Brokerage says that there is very little possibility of a non-NDA government being formed in the country.
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Which sectors are you positive on?
Brokerage house Phillip Capital is positive on sectors for the coming days, citing high probability of base case, including automation, EV, defense, railways, logistics, ports, roads, real estate, metals, cement, energy and financial sectors. In fact, the government is either focusing on these sectors or these sectors are expected to benefit from the government’s policies.
Top Picks for 1 Year
SBI, Bank of Baroda, Canara Bank, PFC, REC, Shriram Finance, Muthoot Finance, UltraTech Cement, Siemens, Hero MotoCorp, TVS Motor, Device Lab, Syngene, APL Apollo, Jindal Shaw, IGL, Aarti Industries, Vinati Organics, Proj, Gokaldas Exports, SP Apparel.
Top Picks for Long Term
HDFC Bank, ICICI Bank, SBI, Kotak Bank, Bajaj Finance, Sundaram Finance, MAS Financial, Infosys, HCL Tech, Persistent Systems, KPIT Tech, RateGain, Reliance Industries, GAIL, Ambuja Cement, JK Cement, L&T, Bharti Airtel, Sun Pharma, Device Lab, Syngene, Coal India, JSW Steel, Jindal Stainless, Maruti, Bharat Forge, Ashok Leyland, Concor, NCC, PNC Infra, Gateway Distriparks, SRF, Aarti Industries, Navin Fluorine, PI Industries, Coromandel, Dhanuka Agritech.
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Voter turnout is not a concern
Brokerage house Phillip Capital says that voter turnout does not seem to be a matter of much concern. Based on the simple average of voting data released till Phase 6, the average turnout is 65.5% compared to 67.4% in the 2019 elections. However, for the same constituencies where voting has been completed, the absolute voter turnout provided till Phase 5 is 66.4% compared to 67.8% in 2019, which is slightly lower. Higher voting compared to 2019 was seen in Jammu and Kashmir, Karnataka, Telangana, Maharashtra, Andhra Pradesh, Chhattisgarh, Meghalaya and Goa.
Of the 485 constituencies where voting has ended, 155 saw high participation while 330 saw low voter turnout. Of these 485 constituencies, 279 are currently held by BJP MPs (192 of these constituencies saw low voter turnout). Among BJP-ruled constituencies, 6 seats saw less than 10 per cent voter turnout. There are 50 seats that saw 5 to 10 per cent less voter turnout and 135 seats saw less than 5 per cent voter turnout.
(Disclaimer: Investing or selling stocks is advised by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)