These 'Modi stocks' may benefit from BJP win in Lok Sabha elections, CLSA says

The list features many public sector undertakings (PSUs) from capex and infrastructure-linked sectors which the brokerage named as “Modi stocks”.

International brokerage CLSA said that 54 companies could be direct beneficiaries of the current government's policies. The list features many public sector undertakings (PSUs) from capex and infrastructure-linked sectors which the brokerage named as “Modi stocks” since they have gained based on chances of the BJP coming back to power.

PM Narendra Modi (C) waves to supporters during an election campaign rally, in Kolkata. (AFP)

The “Modi stocks” have outperformed the Nifty and the trend is likely to continue, especially if the incumbent government returns to power with a strong majority, the brokerage said. These include L&T, NTPC, NHPC, PFC, ONGC, IGL, and Mahanagar Gas. The brokerage said that PSU stocks could continue to rise until June or July and a similar pattern was observed in the last two elections when PSUs gained following the election results.

Other than these stocks, banks such as HDFC Bank, ICICI Bank, Axis Bank, and IndusInd Bank also growth potential and their stocks could rise, CLSA said.

Other stocks highlighted by CLSA are Ashok Leyland, UltraTech, L&T, Bajaj Finance, Max Financials, Zomato, and DMart. Among the telecom-related sectors, Bharti Airtel, Indus Towers, and Reliance Industries are CLSA's top picks.