STOCKS TO BET ON IF MODI ACHIEVES HAT-TRICK
The 2024 Lok Sabha election is happening,
and India’s political landscape is heating up.
The Bharatiya Janata Party led by Modi is
seeking a hat trick, while opposition parties
are allying to challenge BJP’s election win.
The election outcome will impact the stock
market, and smart investors must know the
sectors and stocks that may benefit from
BJP win. So here we dive deep to make a
Modi government-friendly stock portfolio.
Sectors on stock to watch:
1. PSU Banks
The government initiated the policy of
merging smaller PSU banks to improve the
the overall health of the sector. This is being
done to decrease high NPAs and low capital
adequacy ratios(CARs). Here is an example of how
merger policy has benefited this sector.
When the government merged Allahabad
Bank and Indian Bank, the combined NPA
fell to 4.6 percent. The CAR also goes to 13%
with the Mudra loan limit expanded in the
PSU bank. Small finance banks and
microfinance institutions will also benefit.
All PSU bank stocks are recommended.
2. Railway Stocks
Indian Railways received a major boost
from the government with an increase in
Capex. In last year’s budget, the government
allocated 2.55 lakh crore for the growth of
Indian railways. This figure is nine times
more than the budget announced in the
fiscal year 2013-14. Track laying speed
reached 14.4 kilometers per day making the
highest ever commissioning.400 new
generation Vande Bharat trains are said to be
built and produced over the next three years,as said by Finance Minister
which will further increase demand for
railway suppliers.
These stocks to watch out for:
1. Titagarh rail system
2. RITES
3. IRFC
4. IRCON
3. Defense sector
The defense sector has been on a special
focus with a budget outlay of 6.21 lakh crore
approx $75 billion this fiscal year. Indian
defense exports have risen 23 times in the
last 10 years. This significant growth
promotes the success of the ‘MAKE IN
INDIA’ initiative which aims to boost
domestic production and reduce foreign
reliance. The target of the government is to
increase defense exports to 35,000 crores by
2024-2025.
Stocks to watch out for:
1. HAL
2.BEL
3.Mazagon Dock ShipBuilder Limited
4. Cochin Shipyard
