The Indian stock market soared on Monday as investors celebrated exit polls forecasting a decisive victory for Prime Minister Narendra Modi-led government, securing a third consecutive term with a comfortable majority.
Lok Sabha 2024 elections concluded on June 1, and an average of all exit polls predicts NDA 3.0 with a forecast of 370 seats (vs 353 seats won in 2019).
According to domestic brokerage house Motilal Oswal, the likely victory of NDA augurs well for the economy and capital markets as it provides stability and continuity in policy-making.
The brokerage has identified 8 stocks that shall benefit from the government’s focus on manufacturing, capex, and infrastructure creation. It has a time frame of 3-6 months for these stocks with a potential upside of up to 20 percent. Let’s take a look:
SBI: The stock is in an overall uptrend and forming higher highs – and higher lows on a monthly scale. The stock has outperformed within the PSU space and is likely to scale new record highs.
L&T: The stock has given a range breakout on the weekly chart and holding well above 50 DEMA. Momentum indicator RSI is positively placed which may make the prices higher.
BEL: The stock is trading at lifetime high territory and has formed a strong bullish candle on a monthly scale. The overall setup is bullish and buying is visible across the defence space which may support the ongoing momentum.
GAIL: The stock is on the verge of giving a trend line breakout on a daily scale and holding well above its 50DEMA. Buying interest is seen within CPSE stocks and stock to likely to scale higher.
NHPC: The stock is forming higher highs – higher lows for the past few weeks and managed to close above 100 zones. Momentum indicator RSI is positively placed which may support the ongoing up move.
RVNL: The stock gave range breakout above on weekly scale and trading at lifetime high territory. Buying is visible across railway stocks which may take prices higher.
NMDC: The stock has retested breakout on the weekly scale, taking support near its 50DEMA. Risk reward is favorable at the current juncture and is likely to inch higher from current zones.
HUDCO: The stock is in an overall uptrend and is on the verge of breakout on the daily scale above 277 zones. The stock is likely to scale new record high and momentum indicator RSI is positively placed.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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