Modi stocks: CLSA picks election theme shares ahead of June 4 outcome

Foreign brokerage CLSA has reportedly identified 54 out of 183 liquid stocks, which are perceived as direct beneficiaries of the Modi government's current policies. Half of these are PSU shares. In it India strategy note, CLSA said 90 per cent of Modi stocks have outperformed the market against 42 per cent other stocks. It sees this outperformance to continue in the case of strong election results in favour of BJP.

As per a survey of stock analysts by Business Today Markets, the market is pricing in 300-320 seat wins for BJP in the ongoing elections. The last phase of six-week long elections will be held on June 1 and vote counting is scheduled for June 4.

This narrow election theme based rally may end in June-July, ET NOW reported CLSA as saying.

The CLSA list included Reliance Industries Ltd, Larsen & Toubro Ltd, NTPC Ltd, NHPC Ltd and Power Finance Corporation Ltd. Others in the list included Bharti Airtel Ltd, Mahanagar Gas, Indus Towers, Ashok Leyland and UltraTech Cement.

CLSA, as per CNBC TV 18, sees banks as best risk-reward in India growth play in H2FY25. It prefers HDFC Bank, ICICI Bank, Axis bank and IndusInd Bank.

It also likes Bajaj Finance, Max Financial, Zomato and Avenue Supermarts (DMart), as per reports. Business Today could not independently verify the reports.

(More to come)