Lok Sabha election 2024: After the sell-off on Dalal Street, the Indian stock market investors must be looking for bottom fishing opportunity. For such value investors, Lok Sabha election 2024 is one of the biggest factors and they are looking at all possible stocks that may yield whopping returns in the medium to long term. According to experts, following pre-poll survey outcomes, the Indian stock market has already priced in the anticipated victory of the BJP-led NDA in fast approaching Lok Sabha elections. However, they predicted that after the recent sell-off, medium to long-term investors may look at infrastructure, defence, oil, power and renewable energy, PSU, auto, and banking stocks.
On stocks to buy for the long term ahead of the Lok Sabha election 2024, market experts listed out 11 buy or sell stocks — BEL, NTPC, NHPC, M&M, Maruti Suzuki, ONGC, Hindustan Aeronautics Ltd or HAL, ICICI Bank, Axis Bank, State Bank of India (SBI), and Canara Bank.
Sectors in focus
Speaking on the segments containing value picks ahead of the Lok Sabha election, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360 said, "The market may have already priced in the anticipated win for the NDA, potentially limiting the upside for stocks post-election. Nonetheless, certain sectors stand to benefit from a stable government: infrastructure, defence, Power & Renewable Energy."
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Advising stock market investors to look at PSU, banking, and auto segments, Saurabh Jain, Vice President — Research at SMC Global Securities said, "The government policies are expected to continue if the Lok Sabha election results come in sync with the pre-poll survey. In that scenario, auto, oil and power, and banking stocks may continue to outperform other segments."
Stocks to buy for long term
On stocks to buy with the Lok Sabha election 2024 in focus, Amit Goel of Pace 360 said, "We advise investors to look at stocks such as Bharat Electronics Ltd (BEL), NTPC and NHPC."
On shares to buy for the long-term ahead of the Lok Sabha election, Sandeep Pandey, Founder of Basav Capital said, "The Indian government has been able to contain inflation under control and in the wake of high-interest rate regime peaking out, the Reserve Bank of India (RBI) may announce timeline for the interest rate cut after the US Fed meeting. In that case, banks are expected to have more money for lending business, and post-Lok Sabha election, infrastructure projects are expected to gain momentum. In that case, Indian banks with strong CASA are expected to deliver strong quarterly numbers. So, one can buy State Bank of India and Canara Bank in the PSU bank segment whereas they can look at buying SBI and Axis Bank shares in the private bank segment."
Among other than banks in the PSU segment, Sandeep Pandey of Basav Capital said, "One can look at buying ONGC and HAL shares." Sandeep Pandey said that Mahindra & Mahindra (M&M), and Maruti Suzuki India Ltd (MSIL) shares are also looking promising bets ahead of the Lok Sabha polls.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 23 Mar 2024, 12:10 PM IST
