The Lok Sabha elections of 2024 would be a landmark occasion that will probably have a big impact on the Indian stock market. Brokers have chosen a few equities that are likely to be optimistic both during and after the elections of 2024.
A few industries are always in the spotlight during the year of the general election because of the new government’s formation, recent announcements, and the presentation of the entire year’s budget.
In the past Lok Sabha elections, the Nifty index has leaned four times out of five, according to a report by JM Financial. The largest increase occurred after 2009, when the Nifty returned 25%. 2019 saw the lowest return, with the index rising 8%. The only year this didn’t happen was 2004, when the Nifty dropped 10% in the three months leading up to the elections.
These are a few equities that brokerages expressed bullish opinions about.
Electronics Bharat Ltd. (BEL)
“We expect Bharat Electronics to see strong growth going forward due to several reasons, such as moving towards self-reliance in defence; strong pipeline and focus on exports by the government; strong order flow growth to drive revenue; and profitability.”
Anand Rathi
It’s also important to note that BEL is involved in the production of electronic voting machines, or EVMs.
L & T
Following the elections, the Center will intensify its focus on infrastructure. The budget might possibly contain some fresh news for the industry. As of right now, the company has orders totaling Rs 4.7 lakh crore. This amounts to 3.8 times the FY23 revenue of the corporation.
The buildings and factories vertical of L&T Construction has lately secured many orders worth between Rs 2,500 crore and Rs 5,000 crore.
Motilal Oswal has set a target price of Rs 4,200 for Larsen & Toubro and issued a ‘Buy’ call.
HAL
Orders for this aerospace and defense PSU are coming in all the time. The Defence Ministry placed orders with it last week for a total of Rs 2,890 crore. The Morgan Stanley study states that Rs 3,129 is the target price for HAL shares.
“We expect India’s military aircraft strength to decline over the coming few years, given geopolitics and an acceleration in orders and manufacturing ramp-up at HAL for more aircraft than in the last decade.”
UBS
Adani Enterprises
A recent Cantor Fitzgerald research suggests that the stock could gain sharply over the next three months. The global brokerage has maintained Rs 4,368 as its target price. “Adani has taken actions to reduce liquidity risk, improve governance and increase transparency,” it said.
