The results of the State Legislative Assembly Elections are out. The victory of the BJP Bharatiya Janata Party brings the party back to power in the general elections of 2024. BJP has won 3 major Hindi heartland states, Chhattisgarh, Madhya Pradesh, and Rajasthan. The results of the elections have been shared on the website of the election commission and the effects of these results are also quite visible on the Indian stock market. As expected, on Monday, 4th December 2023, Sensex surged over 900 points in trade to cross an all-time high level of over 68,000. The Nifty50 reached new highs of 20,550, up more than 1% in trading.
There is no doubt in saying that the success could potentially contribute to a positive lift-up in the Indian stock market. As per analysts, the better-than-expected performance of the BJP in the election has substantially decreased the perceived risk for 2024, as it looks highly likely to triumph in the upcoming Lok Sabha election. Those investors who are waiting to invest their money in the stock market will be keen to know which stock is good to buy. On Monday, the benchmark indices started at their fresh lifetime highs and it continued their gaining chain for the 5th consecutive session.
Furthermore, the Nifty 50 hit a record high of 20,291 on Friday. The brokerage states that the results of the state assembly, branded as a semi-final to the forthcoming Lok Sabha Elections that will be in May 2024, will provide comfort to the stock market. The brokerage suggested buying stocks in large-cap and mid-cap. In large-cap stocks, Motilal Oswal suggested buying M&M, L&T, SBI, TITAN, Hero Honda, Axis Bank, Indian Hotels, and ULTRATECH. The brokerage suggested to buy stocks in Mid-cap are Global Health, Godrej Properties, PNB Housing, Angel One, Sunteck Realty, and Lemon Tree.
The other suggestions regarding buying the stocks after the election are shared by brokerage house PhillipCapital. These stocks include Gateway Distriparks, Muthoot Finance, PNC Infra, Hindustan Aeronautics (HAL), Coromandel, Mahindra Logistics, Dr. Reddy, Deepak Fertilizers, Hero MotoCorp, GET&D, ICICI Lombard, LTIMindtree, Nippon Asset Management, Gateway Distriparks, SBI Life, PG Electroplast, Kaynes, Tata Motors, PFC, Shriram Housing Finance, Havells, JSW Steel, ACC and Maruti. The report shared by the brokerage shows enthusiasm and an optimist approach towards the industrial (defence and capital goods), metals/pipes, cement, automotive, and EMS sectors while creating as well as maintaining diversified positions in other industries (staples, financials, discretionary, and pharmaceuticals.”
Apart from it, Chief Investment Officer, Jitendra Gohil, Kotak Alternate Asset Managers stated that “Equity market is poised for further highs. The domestic and global macroeconomic environment remains highly supportive of the equities of India. The decisive verdict could bolster investor confidence in Indian equities. The stockholders and investors may extrapolate this resounding win for the ruling government and assign a higher probability of a stable government at the center in the forthcoming general election of 2024.” As of now, we have only this many details, to know more just stay tuned with us and don’t forget to read our other blogs.