The 2024 general elections in India are expected to take place next year to elect the members of the 18th Lok Sabha. As the elections near, the stock market often gets impacted by the election news and announcements. Investors try to identify stocks that may benefit from certain policy decisions or changes in government if a particular party or alliance is voted to power.
Domestic brokerage firm Shriram Way2Wealth recently released a report highlighting 10 stocks that investors could buy before the 2024 elections for potential gains. The brokerage expects these stocks to offer upsides in the range of 10-20% in the medium to long term. Let’s take a look at these 10 stock picks:
1. Bharat Electronics Ltd (BEL): BEL is a defence public sector undertaking and is seen benefiting from the government’s focus on modernizing the armed forces. The brokerage sees its stock rising to Rs. 215 in the coming months from the current price of Rs. 185, offering an upside of 14%.
2. Hero MotoCorp: As the largest two-wheeler maker in India with a strong presence across rural markets, Hero MotoCorp is well-positioned to gain from any rural income support measures. The target price is Rs. 5,020, implying an upside of 14%.
3. Hindustan Unilever Ltd (HUL): HUL is seen recovering faster than peers on the back of its wide product portfolio and distribution reach. The target is Rs. 2,828, an upside of 11% from current levels.
4. Indian Oil Corporation (IOC): Post elections, oil marketing companies like IOC often see margin boost as fuel prices are adjusted. The target is Rs. 160, offering 11% potential gains.
5. IRCTC: With focus on expanding non-railway business and new trains like Vande Bharat, IRCTC’s revenues are expected to rise. The target is Rs. 1,080, an upside of 16%.
6. NDTV: News channels see higher viewership and ad revenues during elections. The target for NDTV is Rs. 325, implying an upside of 21%.
7. State Bank of India (SBI): As the largest lender, SBI is seen benefiting from policy continuity post elections. The target is Rs. 700, offering 10% potential upside.
8. UltraTech Cement: With pre-poll infrastructure push and rural focus, cement demand is likely to rise. The target is Rs. 10,980, 11% above the current price.
9. United Spirits: Growing experimentation in alcohol consumption to support long-term volume growth. The target is Rs. 1,192, an upside of 12%.
10. Varun Beverages: Strong franchise in key markets makes it a good play on beverage sector. The target is Rs. 1,452, offering 18% potential gains.
In summary, the above 10 stocks from sectors like defence, auto, FMCG, financials, infrastructure, and media are expected by the brokerage to deliver returns in the range of 10-20% leading up to and after the 2024 general elections in India, subject to market and economic conditions.
