Top election stock ideas: What are brokerages betting on based on Modi’s expected win?

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Stock market ideas: The stock market witnessed a significant surge on Monday, with Nifty soaring by approximately 3% and Sensex skyrocketing by 2,778 points. This remarkable rally was seemingly driven by heavy short-covering by Foreign Institutional Investors (FIIs), following the exit polls that caught the market off guard by forecasting a resounding victory for the National Democratic Alliance (NDA).
According to an ET report, traders enthusiastically embraced the “Aayega To Modi” slogan as an investment approach, eagerly acquiring Prime Minister Narendra Modi’s preferred Public Sector Undertakings (PSUs) in their entirety.
Across the board, all sectoral indices were engulfed in a sea of green, while the India VIX, Dalal Street’s fear gauge, plummeted by 20%.
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Neeraj Chadawar of Axis Securities expressed optimism, stating, “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.”
Exit polls, averaging results from 12 surveys, project the NDA to secure 367 seats in this election, surpassing its previous tally of 353 in the 2019 polls. Even the most conservative estimate predicts a minimum of 316 seats for the alliance. Although the NDA may not achieve its ambitious ‘Abki Baar 400 Paar’ goal, traders anticipate the Nifty to surpass the 24,000 mark this week.
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Nomura has set its December 2024 Nifty target at 24,860, based on a 20x multiple. Brokerage firms maintain a positive outlook on domestic sectors, with stocks related to manufacturing and capital expenditure topping their priority list.

Top Election Stock Ideas:

  • Motilal Oswal’s model portfolio remains focused on key domestic cyclical themes, backed by consistent earnings growth. They are overweight on financials, consumption, industrials, and real estate sectors. Their top picks include 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 favors ONGC, NTPC, NHPC, SBI, Power Finance, IGL, and Mahanagar Gas in the PSU space. Among non-PSU Modi stocks, they prefer Ashok Leyland, Ultratech, L&T, and telecom stocks like Bharti Airtel, Indus Towers, and Reliance, which are linked to tariff hikes.
  • Nomura’s top picks in India include SBI, ICICI Bank, GCPL, M&M, BHEL, Reliance Industries, and Bharti Airtel. In the midcap segment, they like Federal Bank, Voltas, Lupin, Medplus, InfoEdge, and Uno Minda.
  • Axis Capital’s top picks are “SBI, Bank of Baroda, REC, NTPC, JSW Energy, Suzlon, RVNL, J Kumar Infra, and Hindustan Aeronautics.”
  • Sharekhan’s top picks include 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, and PFC.
  • Phillip Capital’s top picks are “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’s top picks include 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.

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