BJP Manifesto, Lok Sabha elections 2024: The BJP Manifesto for the forthcoming Lok Sabha elections is out. While the key announcements indicate policy continuity, analysts noted there is a greater scale, clarity, confidence, and rigour at play. Phillip Capital said if BJP gets the third term, it would be more aggressive in terms of execution and policy development. Among sectors, it is positive on automobiles, cement, metals (pipes), real estate, alternative fuels, financials, pharma (CDMO), FMCG, hotels and aviation sectors.
"We remain bullish on India’s economy and equities with a long-term perspective. We expect the country’s economy at $6.7 trillion and the Nifty at 40,000 by FY30," Phillip Capital said.
In the auto sector, BJP talked about making all efforts to develop India as a 'Global Manufacturing Hub'. It is positive for auto suppliers such as Motherson and Sona BLW, who already supply to global OEMs. BJP said it will support the growth of the automobile industry and its transition to EV manufacturing. It will invest in establishing a nationwide EV charger infrastructure to encourage EV adoption, which is positive for players with reasonable exposure in the EV space like Tata Motors and TVS Motor.
The government launched a scheme PM-eBus Seva to introduce a fleet of e-Buss across cities to provide affordable and safe transport to citizens. BJP intends to extend it to other eligible cities, which would be positive for e-Bus players like Ashok Leyland, Tata Motors, JBM Auto, Olectra Greentech.
"The government has ensured unprecedented increase in MSP for major crops. BJP will continue to increase MSP from time to time. This will increase the income of farmers which can be invested for modern farming and agriculture. Positive for Escorts Kubota and M&M," PhillipCapital said.
In the case of banks, Mudra loan limit expansion will be positive for the PSB, SFB and MFIs. The expansion of PM Awas Yojana will be positive for HUDCO, as these are largely housing under government schemes for poor, where HUDCO lends to the implementing authority.
BJP said it will use Digital India infrastructure, developed over the last 10 years, to create a robust and easy Digital Credit solution to support the growth of small traders and MSMEs. This move will be positive for Shriram Finance, MasFin (NR), and Bajaj Finance, Phillip Capital said.
BJP will make efforts to develop and expand auto industry. It intends to establish a nationwide EV charger infrastructure to encourage EV adoption. This will be positive for Sundaram Finance, Shriram Finance and Chola.
A total of 30 million new households will be constructed for poor. This will be positive for major steel players. Har Ghar Nal se Jal for all households in villages, towns and cities will extensively use technology to reduce the wastage of water. This will be positive for DI pipes, HSAW pipes, and plastic pipe players.
Likely beneficiaries are Jindal Saw, Welspun Corp, Electrosteel Castings, Hi-Tech, JTL, Surya and APL Apollo. UltraTech Cement and Ambuja Cement will be the largest beneficiaries of housing sector demand, PhillipCapital said.
In the FMCG sector: "Company in focus whose meaningful revenue is coming from Rural: Dabur, Emami and Bajaj Consumer – (45-50 per cent of total sales). Modest negative for private dairy company (Hatsun Agro, Heritage Food, Dodla Dairy and Parag Milk. Boost in subsidy assistance to co-operatives (50-55 per cent of organised sector), might lead to an increase in the cost of milk procurement for private dairy company and also entry of new small cooperative could further lead to increase the competition."
In the oil & gas sector, the government’s vision is to get more and more households converted to PNG-D.
"Our sense is that since these licenses are already given out, the work has started, with some ordering already done as per the minimum work program that CGD license holders are supposed to follow. However, there will be incremental demand as well. This move will also have a positive bearing on consumption, and therefore, import of natural gas (LNG) in the country. This implies incremental revenue for players like GAIL, PLNG, in addition to CGD players (IGL, MGL, Gujarat Gas, and Adani Total Gas," PC said.
BJP said it will expand Research Linked Incentive (RLI) schemes, encouraging companies to invest in research for new drugs, chemical entities and new biological entities. These announcements would be positive for CDMO play like Divis, Syngene, Suven and Ami Organics.