A Decade of Change and Challenges From 2014 to 2024, India has witnessed significant shifts in its political landscape. The era of policy changes has given way to a critical phase where execution capabilities will be put to the test. As the country heads into elections, the focus shifts from promises and manifestos to the acid test of polls.
Raj Vyas, VP - Research, Teji Mandi suggests upside trends in metal automobile, cement & power sectors. The New upcoming regime is fundamentally positive on said sectors. Investor will have multibaggers from these sectors.
The stock market has been closely monitoring state election results and opinion polls. There’s a growing consensus that vote share consolidation will favor the incumbent government. This expectation is already reflected in stock prices, with the market anticipating a favorable mandate. However, markets don’t merely react to past earnings; they respond to deviations from current estimates.
Over the years, election day volatility in Indian markets has decreased significantly. If this trend continues, we can expect relatively stable market conditions during the polls. Beyond elections, factors like economic growth and interest rates will shape market dynamics.
In terms of sectoral impact, the BJP-led government’s manifesto promises continuity and enhancement of existing policies. Sectors like automobiles, cement, metals, and real estate stand to benefit if the government retains power. Infrastructure and auto initiatives are likely to continue, driving growth in these areas.
FPIs have shown a clear preference for domestic cyclicals over large caps. Their bullish outlook on the domestic economy underscores faith in India’s growth prospects. Despite election-related volatility, fundamentals will ultimately drive market behaviour.
Raj Vyas, VP - Research, Teji Mandi, subsidiary of Motilal Oswal Financial Services, said "the manifesto’s emphasis on electric-vehicle charging infrastructure highlights the party’s commitment to this burgeoning sector. As India transitions toward cleaner energy solutions, EV infrastructure will play a pivotal role."
"The government’s reaffirmation of green initiatives includes ambitious targets: 500 GW of renewable energy, the Green Energy Corridor project, and enhanced green hydrogen production. These steps align with global efforts to combat climate change and can remain in focus as well. said Vyas"
