Election results will be on 4 june 2024, everyone will keep their eyes on stock market. Stock market react more when election happens, because market react when big event happens and election in india held on every 5th years.
After completed last phase of election on 1st of june 2024, exit polls prediction gave significance poll about which party will rule for next 5 years.
There are three situation of results of election outcome. First is when ruling party wins the election means BJP, then stock market will show positive outlook and market will grow in upward direction. Everyone knows pre define laws and regulation for corporate, jobs, policies, etc.
Second BJP loses, Rahul gandhi rules the india then market will react in negative direction because rahul gandhi supports government jobs, non corporate, free money, etc. If government not support business then country’s future is in dark.
Market love predictability, when their is a unpredictable senario then india vix is increases and stocks and indices are more volatile than average days.
Any non ruling party is come into rule then stock market falls by more than 5% or more. Stock market react very positive in 2009 and increases by 17% in a day INDIA rule by finance expert Singh.
Third condition, currently market is at all time high if both party not wins the battle then stock market show downward reaction.
Stock market directly reacted to election results. which stock and sector will get benefits if NDA wins.
Top Sectors For Investment if BJP Wins The Election
NDA give manifesto for businessman, private job holders, Government schemes, etc. that’s why market love BJP.
There are many sectors that is good for investment because of ruling government. here are the list of those sectors.
Infrastructure Sector
Infrastructure is leading among other sector, infrastructure stock like larsen & Turbo, GMR Infrastrucutre and IRB Infra these companies will grow.
New development of roads and commercial properties in big cities is on fire under NDA. On an average 37km of roads is created on a daily basis. India is a developing county so Infrastructure is very important for overall GDP production.
Rahul Gandhi also invest into Larsen and Turbo and his portfolio was stood at 20 Cr now. He believe in indian growth story.
Private Banks
Government bank was privatize now, all lose making banks now generating profits after becoming private. Private bank are more efficiently handles, because their is not fix pension for retirement or job. Those who have skills lead the positions.
HDFC Bank, Kotak Mahindra Bank, ICICI Bank, etc is on focus. Central bank was in loss at the time of corona but now in 2024 company was profit making.
Many people only join government bank for less work and free corruption. Government banks take more time for same amount of work to be done while private is fast.
Defence Sector Stocks
NDA directly talks about defence stocks openly in tv channels to invest into it. Defence sector stocks rally from last one year. Defence companies like HAL, Paras Defence and Space, Bharat Dynamics, etc.
Defence is top pick by Narendra Modi to invest in. Space sector is less viral in india and private players are not active. Policy support may increases space to next level. Trending sector like power, EV and IT will also grow at 8% CAGR.
