election stocks to buy: Election stocks to buy: Over 50 ideas for investors betting their house on Modi’s victory

Led apparently by heavy short-covering by FIIs, Nifty zoomed around 3% and Sensex shot up to 2,778 points on Monday morning after exit polls surprised the stock market by predicting a landslide victory for NDA. “Aayega To Modi” slogan became an investing strategy as traders were seen buying Prime Minister Narendra Modi‘s favourite PSUs lock, stock and barrel.

Dalal Street‘s fear index India VIX also slumped 20% as all sectoral indices were swamped in a flood of green.

“If the Lok Sabha results on 4th June materialize as per the Exit Poll direction, our country will likely enter a “Golden Phase” of political stability and policy continuity. The Indian economy is in a sweet spot of growth and remains the land of stability against the backdrop of a volatile global economy. With this expectation of political stability and policy continuity, the prospects of the Indian economy appear notably brighter and more promising in the upcoming years,” said Neeraj Chadawar of Axis Securities.

According to the average of 12 exit polls, NDA is seen as winning 367 seats this time, improving its 353 count in the 2019 elections. Even the lowest forecast is that of 316 seats. While the NDA may fall short of its ambitious ‘Abki Baar 400 Paar’ target, traders see Nifty going beyond 24,000 this week.

Also read | ‘Aayega To Modi’ becomes new ATM strategy for stock investors before election result

Nomura has set the December 2024 Nifty target at 24,860, based on 20x. Brokerages are constructive on domestic sectors with stocks related to manufacturing and capex being on top of their list.

Here are top election stock ideas from brokerages:

Motilal Oswal

Our model portfolio remains aligned with the key domestic cyclical themes amid a consistent backdrop of earnings growth. We remain overweight on financials, consumption, industrials, and real estate. Industrials, consumer discretionary, real estate, and PSU banks are our key preferred investment themes.

Top ideas: ICICI Bank, SBI, L&T, Coal India, M&M, Adani Ports, ABB, HPCL, Hindalco, Indian Hotels, Godrej Properties, Global Health, KEI Industries, PNB Housing, Cello World, and Kirloskar Oil.

CLSA

ONGC, NTPC, NHPC, SBI, Power Finance, IGL, and Mahanagar Gas in the PSU space. Of the non-PSU Modi stocks, CLSA analysts like Ashok Leyland, Ultratech, L&T, and the tariff-hike-linked telecom stocks via Bharti Airtel, Indus Towers and Reliance.

Nomura

Our top picks in India are SBI, ICICI Bank, GCPL, M&M, BHEL, Reliance Industries and Bharti Airtel. In midcaps, we like Federal Bank, Voltas, Lupin, Medplus, InfoEdge and Uno Minda.

Axis Capital

SBI, Bank of Baroda, REC, NTPC, JSW Energy, Suzlon, RVNL, J Kumar Infra, and Hindustan Aeronautics are brokerage’s top picks.

Sharekhan

Top Picks: ICICI Bank, IndusInd Bank, M&M, Escorts, Hero MotoCorp, L&T, PNC Infratech, Adani Ports, ABB, Siemens, Thermax, Cummins, Kirloskar Engines, BHEL, HAL, BEL, Mazgaon Dock, Cochin Shipyard, BEML, UltraTech, JK Lakshmi Cement, SBI, Bank of Baroda, Bank of India, PNB, DLF, Sunteck Realty, Arvind Smartspaces, BPCL, HPCL, Coal India, NTPC, PFC.

Phillip Capital

Top Picks: SBI, BOB, Canara Bk, PFC, REC, Shriram Finance, Muthoot Finance, UltraTech, Siemens, Hero MotoCorp, TVS Motor, Divi’s Labs, Syngene, APL Apollo, Jindal SAW, IGL, Aarti Industries, Vinati Organics, Praj, Gokaldas Export, SP Apparel.

Prabhudas Lilladher

Top Picks: L&T, Adani Port, Siemens, ABB, Carborundum, Schneider, Esab, Ingersoll Rand, Kirloskar Pneumatic, HAL, BEL, BDL, BEML, Mazagon Dock, Cochin Shipyard, Ultratech, Ambuja Cement, RIL, Sterling Wilson, Waaree, L&T, Praj Industries, JSPL, JSL, SBI, BoB, Canara Bank, Union Bank, PNB, Polycab, RR Kabel. Dixon, Amber, Keynes and Syrma

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)