With PM Modi running for a record third term, the BJP has set a target of 370 party seats and 400 for the National Democratic Alliance (NDA). On April 19, the seven-phase Lok Sabha Election 2024 will begin, and on June 4, the results will be declared.
Brokerage Phillip Capital in its latest report, stated that the next term strategy of BJP, which PM Modi outlined in his manifesto, intends to significantly expand manufacturing, exports, MSMEs, employment, rural income and empowerment of women and youth in addition. physical and digital infrastructure. It will prioritize housing, defense, railways, aircraft, electricity, roads, electric vehicles, etc. under the infrastructure domain. Future policies must be guided by sustainable, technologically advanced, regionally balanced and internationally united development.
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The brokerage said that while the BJP manifesto suggests political continuity, there is more scope, clarity, confidence and rigor at work.
The brokerage predicts that the party will be more active in developing policies and implementing them in its third term. In its next mandate, it is also expected to implement policies that were established under the previous administration. Over the next five years, a broad emphasis across all industries and segments is anticipated.
“Thus, we remain optimistic about India’s economy and stocks with a long-term perspective. We expect the country’s economy to be at $6.7 billion and the Nifty 50 at 40,000 by FY30,” Phillip Capital said in its report.
Main beneficiaries – Sectoral
According to the brokerage, based on BJP Manifesto the following sectors will benefit: automobiles (EV play + revenue play + penetration); cement; metals + pipes; real estate; alternative fuels (solar, ethanol, hydrogen); financial (PFCs, NBFCs, PSBs); pharmaceuticals (CDMO); FMCG; EMS; hotels; and airlines.
Automobile
The brokerage is confident that the BJP would use every effort to position India as a hub for global manufacturing. It believes it would benefit car suppliers who now supply to international OEMs, such as Motherson and Sona BLW. To promote EV adoption, it will make investments in building a national infrastructure of EV chargers. Useful for companies like Tata Motors and TVS Motor who have enough experience in the EV market.
Banks
The brokerage claims that the extension of the Mudra loan limit will benefit PSBs, SFBs and MFIs. Since most of these homes are part of government programs for the poor, for which HUDCO provides funding to the implementing authority, the extension of the PM Awas Yojana would benefit HUDCO (NR).
Energy
In its analysis, the brokerage stated that the NDA government has made great efforts to spread the CGD network across the nation since assuming office. The CGD network now covers approximately 250 geographical regions, meaning that 99% of the nation’s population and land area are covered by it. This was achieved in the previous ten years. 320 million LPG connections exist so far, compared to about 11 million PNG domestic connections.
From the broker’s perspective, since these licenses have already been issued, work has already begun, and some ordering has already been completed in accordance with the minimum work program that CGD license holders must adhere to. But there will also be additional demand.
This action will also positively impact the nation’s import and use of natural gas (LNG). This suggests that apart from CGD participants, players like GAIL and PLNG will also benefit more from this.
Main beneficiaries – Shares
Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 15 Apr 2024, 11:35 IST