Macquarie’s decision
India’s GDP growth trajectory since 1980 has not been influenced much by the ruling party
I like large caps: HCLT, SUNP, HUVR, HERO, HDFCB.
Stocks to add to this dip, looking ahead 2-3 years: Cummins, Bharat Electronics, Delhivery
Jeffries’ verdict:
Reduce OWT for real estate, industry and public enterprises
Buying Opportunity – Large Cap Laggards Offer the Highest Risk and Reward
OWT Private Banks, Consumer Staples, Auto OEMs
CLSA on Election Results:
Replacing L&T with HCL Tech in India portfolio
Private Banking, IT, Insurance and Commodities are our priority sectors
Concerns over downgrades in high-value discretionary and capital expenditure spaces
ITC remains a popular stock
Valuation Support Preferred – Private Banks.
Bernstein’s verdict
Maintains outlook for high single-digit returns; Nifty targets 23,500
Financial Key OW
UW SMID outperforms large cap stocks
Nuvama on Election Verdict
The new coalition government may be less decisive than the current one
The spending thrust may shift towards rural areas in the near future (rather than capital spending as before)
It is unlikely that the new government will roll back reforms or resort to fiscal overspending.
Jefferies of HUL
Upgrade to Purchase, TP Rs 2950
Given the unexpected election results, we believe the government is likely to adopt policies that are more favorable to consumption, especially in rural areas and the BOP.
This comes at a time when several companies are expecting an increase in rural sales, which bodes well for HUL.
Bernstein’s views on the power sector
Regardless of who the government is, India’s electricity demand has grown at 0.8-1 times real GDP growth over the past two decades.
Demand for electricity is expected to continue to rise as new uses for electricity emerge, such as in EVs and data centers.
NTPC and Power Grid Top Picks
Jefferies Industrials
In this context, Siemens, Hindustan Aeronautics, ABB, Thermax and KEI stand out.
L&T is geographically and sectorally diversified.
NTPC, Power Grid and JSW Energy are major utility companies
CLSA’s Defense
Downgrades BEL to ‘preferred’ from ‘buy’ and raises target price to Rs 294
HAL OP maintained, TP 4731 Rs.
Expensive val leaves little room for execution errors
The Modi government continues to deliver on its “Make in India” defence industry promise, with Indian products worth $43 billion expected to be manufactured in FY24.
