‘If NDA comes to power…’: Keep these stocks on your radar for wealth generation, says Prabhudas Lilladher

Investors on Dalal Street are closely monitoring stocks and sectors that may gain if Prime Minister Narendra Modi wins a third term in the ongoing General Elections, the results of which will be revealed on June 4. In an interaction with Business Today, Amnish Aggarwal, Head-Institutional Research at Prabhudas Lilladher, said of the election manifestos of the major political parties, the BJP’s provides more clarity on the economic path with a focus on building world-class infrastructure and investing in technology transition.

He added that the BJP talked about adding more than 5,000 km of new track every year for the next few years, expansion of Kavach Train Protection System, redevelopment of major and medium size stations to world-class stations and expansion of Gram Sadak Yojana, among others.
“This capex push is going to play a crucial role in markets positively post-elections,” Aggarwal said, adding the list of sectors and stocks to watch out for after the election outcome is not exhaustive.

He added that market participants can zero in on stocks such as Larsen & Toubro, Adani Ports, road and metro EPC companies from the infrastructure space. On the other hand, he prefers Siemens, ABB, Carborundum, Schneider, ESAB, Ingersoll Rand and Kirloskar Pneumatic in the capital goods sector. The market watcher also suggests focusing on Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Bharat Dynamics, BEML, Mazagon Dock Shipbuilders, Cochin Shipyard in the defence sector.

In the cement space, Aggarwal prefers UltraTech Cement and Ambuja Cement. He also likes Reliance Industries, Sterling Wilson, Waaree, L&T and Praj Industries in the new energy space. Aggarwal also said that PSU stocks from railways, defence and BFSI will react favourably if NDA comes to power. “They could get de-rated if INDIA Alliance comes to power,” he said.

In the PSU Banking space, the market analyst is positive on SBI, Bank of Baroda, Canara Bank, Union Bank and Punjab National Bank. He also likes Polycab India, RR Kabel, Dixon Technologies, Amber Enterprises, Kaynes Technology and Syrma SGS Technology in the wire and cables and EMS segment.