On Monday, domestic benchmark indexes closed in the green. The BSE Sensex gained 1,383.93 points, or 2.05 percent, ending the day at 68,865.12. Similarly, the NSE Nifty 50 gained 418.90 points, or 2.07 percent, to 20,686.80.
Motilal Oswal Financial Services expects an increase in market confidence in the Indian stock market following the Bharatiya Janata Party’s (BJP) wins in Madhya Pradesh, Rajasthan, and Chhattisgarh.
Brokerage anticipates the market rally to continue based on the present government and political continuity even after the 2024 general election. According to Motilal Oswal Financial Services.
As history shows, the Nifty has returned anywhere between 10 percent and 35 percent in the six months before the Lok Sabha Elections on all five previous occasions dating back to 1990.
Based on the market outlook, Motilal Oswal anticipates India’s macro and micro fundamentals will stay relatively robust, as evidenced by the following factors:
● The manufacturing and investment sectors led to 7.7 percent real GDP growth in 1HFY24.
● Solid corporate earnings of the Indian stock market.
● The earnings momentum continues to post Q2FY24 as well as Oct-Nov’23.
● Supportive global macroeconomic with peaking rates.
● Attractive valuations with Nifty trading at 17.8 times price to earnings as they are below its long-term period average of 20 times.
Here is a list of a few sector-specific stocks on which brokerage is leaned after BJP won three of four state polls elections.
1) BFSI Sector
State Bank Of India
On Monday’s trade, SBI shares rose 4.2 percent to Rs 596 per share from the previous closing price. In the last six months, the stock has gained 1.5 percent.
Axis Bank
Axis Bank’s stock rose 2.2 percent to a 52-week high of Rs 1,129 per share. The stock has risen 18.2 percent in the previous six months and 25 percent in the last year.
2) Automobile Sector
Mahindra & Mahindra Ltd
Mahindra & Mahindra shares increased 3 percent to Rs 1,675 per share on Monday, up from the previous day’s close. The stock has increased by 19 percent in the last six months and by 31 percent in the last year.
Hero MotoCorp Ltd
The shares of Axis Bank surged 3 percent to a nearer to the 52-week high price of Rs 3,880 per share. The stock has risen 32 percent in the previous six months and 34 percent in the last year.
3) Industrial Sector
Larsen & Toubro Ltd
The shares of Larsen & Toubro surged 5 percent to a 52-week high price of Rs 3,347.5 per share. The stock has risen 46 percent in the previous six months and 59 percent in the last year.
UltraTech Cement Ltd
UltraTech Cement’s stock rose 3.3 percent to a 52-week high of Rs 9,336.7 per share. The stock has increased by 18 percent in the last six months and by 29 percent in the last year.
4) Reality Sector
Godrej Properties
Godrej Properties’ stock rose 3.7 percent to a 52-week high of Rs 1,943 per share. The stock has increased by 36 percent in the last six months and 42 percent in the last year.
Sunteck Realty
The shares of Sunteck Reality rose 1.5 percent to Rs 510 per share from the previous close price.The stock has risen 74 percent in the previous six months and 26 percent in the last year.
5) Consumer Goods Sector
Titan Company Ltd
Titan’s stock rose 1.7 percent to a 52-week high of Rs 3,550 per share. The stock has increased by 22 percent in the last six months and 33 percent in the last year.
6) Hospitality sector
Indian Hotels Company Ltd
Indian Hotels Company’s shares increased 2.3 percent from the previous close price to a 52-week high of Rs 436.05 a share. The stock has grown 11 percent in the last six months and 34 percent in the last year.
Lemon Tree Ltd
Lemon Tree shares increased 3 percent to Rs 116.50 a share from the previous close price. The stock has increased by 23 percent in the last six months and 17 percent in the last year.
Written by Omkar Chitnis
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