Will Indian Stock Market Go Up After Lok Sabha Elections 2024?
As per JP Morgan, Nifty50 could reach 25,000 if Bharatiya Janata Party (BJP) wins a third term in the upcoming Lok Sabha elections.
We are likely to see that investors will start selling their stocks to take profits after the Lok Sabha elections. The election results will trigger this profit-booking. We could see here is a pre-election euphoria building up, where people are expecting the ruling party coalition to win more than 400 seats. This expectation is higher than the number of seats they won in the 2019 elections.
These sky-high expectations have set in. It is believed that if the ruling party coalition wins a number of seats close to what they won in 2019, it might trigger a short-term negative reaction in the stock market. However, they also believe that profit-booking after the elections is inevitable, and the election results will only serve as the trigger point for this profit-booking.
Predicting the Upcoming Stock Market correction:
The overall economic trend will take over, and as long as it remains healthy, we can also expect some downsides in the stock market. Mostly, in the manufacturing and capital expenditure which will remain key areas, regardless of how many seats the ruling party coalition wins.
We could also see that some polls project the ruling National Democratic Alliance (NDA) to win as many as 411 seats. Given the recent performance in state elections and the results of almost all major opinion polls, winning 390-400 seats has become the new base case expectation.
Some analysts said that a correction in the stock market is inevitable, and markets that are simply looking for a reason to fall may overreact to a sentiment that may not rationally mean much.
They said that even if the ruling party wins 300 seats, it will still mean they get an absolute majority, and the construct will be similar to 2019, which is a continuity of power as well as a continuity of the extent of power. However, they acknowledged that 300 seats will be seen as a “below consensus” result, and a reaction in the markets cannot be denied.
Which Stocks Should You Invest in the Upcoming Days?
Some of the stock that are likely to rise, you can invest in the upcoming days are Hindustan Aeronautics, Bharat Electronics, Solar, Mazagon, Bharat Dynamics, Cochin Shipyard, Kaynes tech, Data Patterns, BEML, Mishra Dhatu, MTAR Tech.
In the Fintech and investors category, you my invest in:
HDFC Asset Management (JPM is Overweight), Kfin Tech (neutral), BSE, Nippon, Motilal, 360 One, Angel One, MCX, Nuvama, CAMS, CDSL, UTI AMC, Aditya Birla Sun life.
Stocks to Invest in Manufacturing Companies:
Some of the manufacturing companies that are likely to see profits. As a trader you can invest in these stocks:
- L&T
- Siemens
- ABB
- BHEL
- Cummins
- Tube Investments
- Thermax
- Rail Vikas
- Voltas
- AIA Eng
- Apar
- Grindwell
- IRCON
- Elgi
- Graphite
- EIL
- Voltamp
- Havells (Neutral)
- Polycab
- Dixon
- Whirlpool
- Kaynes
- Amber
- Bajaj Electricals
- Cyient DLM
- Container Corp (Neutral)
- Adani Ports
- Thermax
- Mazagon
- JSW Infra
- SCI
- ION Exchange
- KNR
- ITD
- Va Tech
- Welspun Ent
- Ultratech
- Ambuja
- Shree Cement
- ACC
- Dalmia
- JK Cement
- Brigade
- PNB Housing
- Piramal Ent
- NCC
- Can Fin Homes
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