Lok Sabha election 2024: Following the sell-off on Dalal Street, Indian stock market investors are likely on the lookout for opportunities for bottom fishing. For value investors eyeing potential gains over the medium to long term, the upcoming Lok Sabha election in 2024 stands out as one of the major factors influencing their decisions. They are exploring various stocks that have the potential to deliver substantial returns.
Experts suggest that based on pre-poll survey outcomes, the Indian stock market has already factored in the expected victory of the BJP-led NDA in the upcoming Lok Sabha elections. Nevertheless, they anticipate that in the aftermath of the recent sell-off, medium to long-term investors may turn their attention toward sectors such as infrastructure, defense, oil, power, renewable energy, PSU, auto, and banking stocks.
Market experts have compiled a list of 11 stocks deemed worthy of consideration for long-term investment leading up to the Lok Sabha election in 2024. These stocks include BEL, NTPC, NHPC, M&M, Maruti Suzuki, ONGC, Hindustan Aeronautics Ltd (HAL), ICICI Bank, Axis Bank, State Bank of India (SBI), and Canara Bank.
sectors under consideration
Discussing the segments holding potential value picks in anticipation of the Lok Sabha election, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, noted, “While the market might have already factored in the expected victory for the NDA, which could somewhat constrain stock upside after the election, there are specific sectors poised to gain from a stable government, notably infrastructure, defense, and Power & Renewable Energy.”
Encouraging stock market investors to consider segments such as PSU, banking, and auto, Saurabh Jain, Vice President of Research at SMC Global Securities, remarked, “If the Lok Sabha election results align with pre-poll surveys, we anticipate the continuation of current government policies. In such a scenario, auto, oil, power, and banking stocks could maintain their outperformance compared to other segments.”
Stocks to purchase long-term
When discussing stocks to consider with the Lok Sabha election of 2024 in mind, Amit Goel from Pace 360 recommended, “We suggest investors focus on stocks like Bharat Electronics Ltd (BEL), NTPC, and NHPC.”
In discussing potential shares for long-term investment ahead of the Lok Sabha election, Sandeep Pandey, Founder of Basav Capital, highlighted the Indian government’s success in controlling inflation. He noted that with the high-interest rate regime possibly reaching its peak, the Reserve Bank of India (RBI) might announce a timeline for interest rate cuts following the US Fed meeting. This, in turn, could result in banks having more capital for lending activities. Furthermore, post-Lok Sabha election, there’s an expected uptick in infrastructure projects, potentially leading to increased momentum in this sector. Pandey emphasized that Indian banks with strong Current Account Savings Account (CASA) ratios are likely to deliver robust quarterly performances. Therefore, he recommended considering the State Bank of India and Canara Bank in the PSU bank segment, while SBI and Axis Bank shares appear promising in the private bank segment.
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Sandeep Pandey of Basav Capital also suggested considering stocks other than banks in the PSU segment, mentioning ONGC and HAL shares as potential options. Additionally, he expressed optimism regarding Mahindra & Mahindra (M&M) and Maruti Suzuki India Ltd (MSIL) shares, viewing them as promising investments leading up to the Lok Sabha polls.
