Macquarie on verdict
India’s GDP growth trajectory since 1980 has been less influenced by the ruling party
Like large caps : HCLT, SUNP, HUVR, HERO, HDFCB.
Stocks to add in this pullback with a 2-3 year view: Cummins, Bharat Electronics, Delhivery
JEFFERIES ON VERDICT:
Cut OWT on real estate, industrials, & PSUs
Buying opportunity-large-cap laggards offer the best risk/reward
OWT pvt banks, consumer staples, auto OEMs
CLSA on Elections Result:
Replace L&T with HCL Tech in India portfolio
Private banks, IT, insurance and commodities are our preferred sectors
Fear de-rating expensive discretionary and capex space
ITC remains preferred staples name
Prefer valuationssupport -Pvt Bank.
Bernstein on Verdict
Retain view of high single-digit returns, Nifty target 23,500
Financials key OW
Remain UW SMIDs over large caps
Nuvama On Election Verdict
New coalition may be less decisive than the outgoing one
Spending push could shift towards rural (versus capex earlier) in near term
Do not see the new govt backtracking on reforms or resorting to fiscal profligacy
Jefferies on HUL
Upgrade to Buy, TP Rs 2950
Surprise election outcome makes us believe that gov’t will likely adopt a more favourable policy towards consumption, esp rural/BOP
This comes at a time when a few cos pointing to an expected pickup in rural, which augurs well for HUL
Bernstein on Power Sector
No matter who govt. power demand in India has grown at 0.8-1x of real GDP growth over last 2 decades
With new use cases of power coming in EVs, Data Centers etc., still see higher probability of power demand
NTPC & Power Grid top picks
Jefferies on Industrials
Siemens, Hindustan Aeronautics, ABB, Thermax, KEI stand out in this context.
L&T has geographical and sector diversification.
NTPC, Power Grid and JSW Energy are key utility plays
CLSA on Defence
Downgrade BEL from Buy to O-P, TP Raised to Rs 294
Retain O-P on HAL, TP Rs 4731
Expensive val leave little space for execution error
Expect Modi govt to continue to walk-the-talk for defence ‘Make in India’& to execute $43bn in Indian made products during FY24
