‘Modi stocks’ set to surge? If Lok Sabha exit polls turn true, these top stocks may outperform in Modi 3.0 – Times of India

Modi stocks set to benefit? As the exit polls suggest a clear victory for the BJP-led NDA coalition in the 18th Lok Sabha elections, analysts from various brokerage firms have identified a range of stocks that are likely to benefit from the possible formation of a Modi 3.0 government.
The average of all major exit polls indicates that the BJP-led NDA will secure 374 seats, while the INDIA alliance may get 137 seats and others may get 30 seats.
Today’s Chanakya survey suggests that the NDA could secure up to 400 seats, while India Today-Axis predicts a range of 361 to 401 seats, and India TV-CNX forecasts between 371 and 401 seats. Even the most conservative estimates from News Nation and TV 9 Bharatvarsh-Polstrat predict 342 seats for the NDA, comfortably surpassing the majority threshold of 272 seats.
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If the exit polls prove to be accurate, “Modi stocks” could experience a rally, as predicted by many analysts according to an ET report. Companies and sectors that have directly benefited from the policies and initiatives implemented by the government under the leadership of Prime Minister Narendra Modi are referred to as Modi stocks. These stocks are particularly attractive to investors who seek to capitalize on growth driven by government policies.
According to CLSA, a global brokerage firm, 54 companies have been identified as direct beneficiaries of Modi’s policies, with half of them being public sector undertakings (PSUs). These companies span across various sectors, including defense and manufacturing, infrastructure and transport, power and energy, banking and finance, telecom, and others.

  • Some notable companies in the defense and manufacturing sector include HAL, Hindustan Copper, NALCO, Bharat Electronics, Cummins India, Siemens, ABB India, SAIL, BHEL, Bharat Forge.
  • In the infrastructure and transport sector, Indus Towers, GMR Airports, IRCTC, Container Corporation of India are among the beneficiaries.
  • The power and energy sector also has several companies that have benefited from Modi’s policies, such as NTPC, NHPC, PFC, REC, Tata Power, HPCL, GAIL, JSPL, Power Grid Corporation, ONGC, Coal India, Petronet LNG, BPCL, IOCL.
  • In the banking and finance sector, SBI, PNB, Canara Bank, Bank of Baroda are among the beneficiaries.
  • The telecom sector includes companies like Bharti Airtel, Vodafone Idea, Indus Towers.
  • Other companies that have benefited from Modi’s policies include Adani Ports, Ambuja Cements, ACC, Indian Hotels, Reliance Industries, L&T, UltraTech Cement, Shree Cement, The India Cements, Dalmia Bharat, The Ramco Cements.
  • Among the 54 companies identified by CLSA, the analysts have expressed their preference for certain stocks, including L&T, NTPC, NHPC, PFC, ONGC, IGL, MGL, Bharti Airtel, Indus Towers, and Reliance.

Amar Ambani, an Executive Director at YES Securities, has recommended several stocks that investors should consider purchasing prior to the announcement of the 18th Lok Sabha election results on June 4th. These stocks, which include NTPC, Texmaco Rail & Engineering (Texrail), SBI, GMR Airports Infrastructure, and Bharti Airtel, have the potential to generate returns of up to 26% for investors.
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Previously, Phillip Capital, a brokerage firm, identified 21 stocks that could potentially increase investors’ wealth over the next year, based on the assumption that the incumbent BJP would maintain power with 290-300 seats in the Lok Sabha election result on June 4th.
The top stock picks from Phillip Capital include SBI, BoB, Canara Bank, PFC, REC, Shriram Finance, Muthoot Finance, UltraTech, Siemens, Hero MotoCorp, TVS Motor, Divi’s Labs, Syngene, APL Apollo, Jindal SAW, IGL, Aarti Industries, Vinati Organics, Praj, Gokaldas Export, and SP Apparel.
“We prefer large caps due to valuation comfort. On a sectoral level, we like private banks and the consumption space. As policy continuity is in our base case, we believe any dips should be bought into,” state analysts from JM Financial.

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