The impact of elections on stock market volatility in India is a well-documented phenomenon. Historical data shows that Indian stock markets are more volatile during election seasons, with market indices often climbing in the months preceding elections as investors position their portfolios based on anticipated outcomes.
Stocks that are less likely to be affected by election volatility include those with stable fundamentals, consistent performance, and diversified revenue streams.
Listed below are such stocks from different sectors that may possess less volatility compared to other stocks:
Private Banks: Large-cap private banks are less likely to be impacted by election volatility due to their stable financials and consistent performance.
HDFC Bank Ltd
With a market capitalization of Rs. 11,91,383 crores, the shares of HDFC Bank started Monday’s trading session on a higher note at Rs. 1,599, gaining around 3 percent compared to its previous close of Rs. 1,531.55 and are currently trading at Rs. 1,560 apiece.
Looking at the company’s financial statements, the Net interest income (NII) increased by around 3 percent from Rs. 34,765 crores during the December quarter to Rs. 35,742 crores during the March quarter. In addition, the net profits jumped by around 2 percent from Rs. 17,718 crores to Rs. 18,012 crores during the same period.
ICICI Bank Ltd
With a market capitalization of Rs. 8,06,446 crores, the shares of ICICI Bank started Monday’s trading session on a higher note at Rs. 1,170 compared to its previous close of Rs. 1,21.05. During the trading session, the shares hit a high of Rs. 1,173 apiece, gaining around 3 percent, also recorded as the company’s fresh 52-week and are currently trading at Rs. 1,148 apiece.
Coming onto the company’s financial statements, the Net interest income (NII) jumped by 3 percent from Rs. 21,456 crores during the December quarter to Rs. 22,182 crores in the March quarter. On the other hand, increased by 6 percent from Rs. 11,515 crores to Rs. 12,200 crores during the same timeframe.
Consumer Goods: Large-cap consumer goods companies like Hindustan Unilever, ITC, and Nestle India are generally less volatile and have a stable consumer base.
ITC Ltd
With a market capitalization of Rs. 5,36,905 crores, the shares of ITC started Monday’s trading session on a higher note at Rs. 434 compared to its previous close of Rs. 426.45. During the trading session, the shares hit a high of Rs. 434.90, gaining around 2 percent and are currently trading at Rs. 429 apiece.
Looking at the company’s financial performance, the revenue decreased marginally by 0.2 percent from Rs. 19,337 crores during the December quarter to Rs. 19,291 crores during the March quarter. On the other hand, the net profits declined by around 4 percent from Rs. 5,400.51 crores to Rs. 5,187.22 crores during the same timeframe.
Hindustan Unilever Ltd
With a market capitalization of Rs. 5,54,468 crores, the shares of HUL started Monday’s trading session on a higher note at Rs. 2,381 compared to its previous close of Rs. 2,329.05 apiece. During the trading session, the shares hit a high of Rs. 2,387.45, gaining around 3 percent and are currently trading at Rs. 2,363 apiece.
Coming onto the company’s financial statements, the revenue decreased marginally by around 1.6 percent from Rs. 15,294 crores during the December quarter to Rs. 15,041 crores in the March quarter. On a contrasting note, the net profits increased by 2 percent from Rs. 2,508 crores to Rs. 2,561 crores during the same period.
Healthcare: Healthcare stocks like Sun Pharma, Dr Reddy’s, and Cipla are less susceptible to market fluctuations due to their stable demand and consistent performance.
Dr Reddy’s Laboratories Ltd
With a market capitalization of Rs. 96,571 crores, the shares of Dr Reddy’s Laboratories started Monday’s trading session on a higher note at Rs. 5,937.90, gaining around 2 percent compared to its previous close of Rs. 5,791.85 and are currently trading at Rs. 5,799 apiece.
Looking at the company’s financial statements, the revenue decreased by around 2 percent from Rs. 7,214.8 crores in the December quarter to Rs. 7,083 crores during the March quarter. In addition, the net profits declined by 5 percent from Rs. 1,380.9 crores to Rs. 1,309.8 crores during the same timeframe.
Sun Pharmaceutical Industries
With a market capitalization of Rs. 3,50,303 crores, the shares of Sun Pharmaceutical Industries Ltd started on a higher note at Rs. 1,496.50 compared to its previous close of Rs. 1,459.80. During the trading session, the shares hit a high of Rs. 1,498, gaining around 2 percent and are currently trading at Rs. 1,458 apiece.
Coming onto the company’s financial statements, the revenue decreased by around 3 percent from Rs. 12,156 crores in the December quarter to Rs. 11,813 crores during the March quarter. On a contrasting note, the net profits increased by around 4 percent from Rs. 2,568.03 crores to Rs. 2,666.59 crores during the same period.
Written By Vaibhav Patil
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