These stocks may benefit if PM Modi wins a third term, as per PhillipCapital

While BJP’s election manifesto indicates policy continuity, there is greater scale, clarity, confidence, and rigour at play, said PhillipCapital in a note.

Analysts expect the government to be more aggressive in terms of execution and policy development. Additionally, plans laid out in the current outgoing regime may be executed in the new term.

“We expect broad-based focus across sectors and segments over the next five years. Thus, we remain bullish on India’s economy and equities with a long-term perspective,” the brokerage said.

By financial year 2030, PhillipCapital expects India to be a $6.7 trillion economy and the benchmark Nifty 50 index to cross 40,000.

Here’s the list of stocks and sectors that are likely to benefit the most, as per PhillipCapital:

• Affordable housing (AH): Positive for lenders (HUDCO), metals (major steel players), NBFCs (entire AH), and cement (UltraTech and Ambuja Cement).
• Tourism: Hotel stocks (Indian Hotels and other larger players), aviation (entire industry) and credit-card players
• Railway infrastructure (new and enhancement): Major steel players, APL Apollo, JTL, Hi-Tech Pipes.
• Electric Vehicles: Auto manufacturers (Tata Motors, TVS Motor) and NBFC (Shriram Finance, Sundaram Finance and Chola).
• Auto-part Suppliers: Samvardhana Motherson and Sona BLW.
• Mudra loan limit expansion: PSU Banks, Small Finance Banks and Micro Finance Institutions
• Working capital to MSME: Shriram Finance, Mas Financial Services and Bajaj Finance.
• Natural Gas: GAIL, Petronet LNG, IGL, Mahanagar Gas, Gujarat Gas, IRM Energy, Adani Total Gas along with pipe stocks like Welspun Corp, Maharashtra Seamless and Ratnamani Metals.
• Increase in Crop MSP: Tractor stocks like Escorts Kubota and M&M along with NBFCs like Mahindra & Mahindra Financial Services, Shriram Finance, Sundaram Finance and Chola Finance.
• Har Ghar Jal Scheme: Jindal Saw, Welspun Corp, Electrosteel Castings, Hi-Tech Pipes, JTL Industries, Surya Roshni and APL Apollo Tubes.
• Pharma (Boosting Manufacturing and Research capacities): Divi’s Laboratories, Syngene, Suven Pharma and Ami Organics.
• Rural Recovery: Major beneficiary – Dabur, Emami and Bajaj Consumer; Modest for HUL, Colgate and Britannia.
• PM e-Bus: Ashok Leyland, Tata Motors, JBM Auto and Olectra Greentech.

The Lok Sabha election, which begins on April 19, will be held in seven phase until June 1. Votes are due to be counted on June 4.