Stocks To Invest: A Guideline On What To Pick Based On BJP's Manifesto Policies

The promise of consistency in policies along with more focus on infrastructure and manufacturing sectors provides a lot of insight for potential firms the investors should look into

If the BJP party comes to power in 2024, these stocks could yield attractive returns for the investors

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With the current elections going on, the stock market is constantly feeling the heat of the pending results. Investors are trying to bet on what stocks will work in the future and who will form the new government in India in June. 

The manifesto of the current ruling BJP, ‘Modi ki Guarantee 2024’, has given much food for thought to the market participants. The promise of consistency in policies along with more focus on infrastructure and manufacturing sectors provides a lot of insight for potential firms the investors should look into. Let’s take a look at some of the broader categories and stocks you can keep in your watchlist, that could yield attractive returns if the BJP comes back into power.

Stocks In Focus

Auto Sector

The auto industry is expected to benefit from PM Narendra Modi’s focus on developing India as a ‘global manufacturing hub’. According to a report by Phillip Capital, this indicates positive signs for auto suppliers like Motherson and Sona BLW. The report found that EV firms such as Tata Motors, TVS Motor, etc will gain from the focus on EV manufacturing and the boost expected for developing the EV charging infrastructure in the country. 

Further, the widespread adoption of electric buses should help firms like Ashok Leyland, JBM Auto, Olectra Greentech, etc capitalise on the opportunity. 

Industries 

The promise to focus on core industries such as steel, cement, metals, and engineering goods should give an indication of the current government’s inclination to boost industrial development. 

Investors can look into stocks such as JSW Steel, UltraTech Cement, Ambuja Cement, etc. The party also pledged to adopt greener manufacturing processes, therefore, companies involved in cleaner production technologies should be in focus as well. 

Further, the document also promised to boost defence and railway manufacturing in the country. So steel component makers along with producers in the defence sector can also be kept under watch.

Tourism

The party’s manifesto promises comprehensive development of tourism in the country, with special attention paid to evolving border villages, sustainable eco-tourism, island tourism hubs, and destination wedding sectors. Firms like the ITC Hotel, Indian Hotels Company, Lemon Tree Hotels, etc are expected to gain from this development. 

FMCG

With the ruling party’s promise of providing enhanced support to the farmers in the form of a robust PM Fasal Bima Yojana, timely MSP revisions, swifter payments, and conflict redressal, the rural region in the country could witness a recovery in demand. If the party delivers on these promises, the FMCG firms such as Marico, Dabur, HUL, Colgate, etc could benefit from the revamping of rural and urban demand.

[Disclaimer: Investing in the stock market involves financial risks. Please invest responsibly and only after thorough research and careful consideration. Reader discretion is advised.]