Lok Sabha elections 2024: Brokerages bullish on these stocks during and after polls

The outcome of Lok Sabha elections 2024 will be a pivotal event and is likely to have a significant influence on the Indian stock market. Brokerages have selected some stocks which can remain bullish during and after the 2024 elections. In the general election year, a few sectors always stay in focus due to the formation of the new government, fresh announcements and full-year budget presentation.

According to a report by JM Financial, the Nifty index has inclined four out of five times during the last Lok Sabha elections. The highest rise came after 2009 when Nifty gave a return of 25 per cent. The lowest return was in 2019 when the index was up 8 per cent. The only exception was the year 2004 when Nifty fell 10 per cent in the first three months before the elections.

Here are some stocks on which brokerages gave bullish views.

Bharat Electronics Ltd (BEL)

Anand Rathi has kept a target price of Rs 250 for this stock. "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."

It is also worth noting here that BEL is also associated with the manufacturing of EVMs (Electronic Voting Machines).

L&T

The Centre is going to increase its focus on infrastructure after the elections. There may also be some new announcements for the sector in the budget. The company currently has orders worth Rs 4.7 lakh crore. This is 3.8 times the company's revenue in FY23.

L&T Construction's buildings and factories vertical has recently won multiple orders in the Rs 2,500 crore to Rs 5,000 crore range.

Motilal Oswal has assigned a 'Buy' call on Larsen & Toubro with a target price of Rs 4,200.

HAL

This aerospace and defence PSU is continuously receiving orders. Last week, it has received orders worth Rs 2,890 crore from the Defence Ministry. According to a report by Morgan Stanley, the target price for HAL shares is Rs 3,129.

UBS said, "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."

Adani Enterprises

According to a recent report of Cantor Fitzgerald, the stock may rise significantly in the next three months. The global brokerage has kept its target price at Rs 4,368. "Adani has taken actions to reduce liquidity risk, improve governance and increase transparency," it stated.