Maharashtra Election Result: As the BJP-led NDA is all set to form the next government in the State of Maharashtra, stock market experts are busy guessing the possible changes in investors’ investment strategy. They said the NDA government’s possible landslide victory is expected to evaporate the confusion among the bulls that had erupted after the Lok Sabha election results. They noted that Maharashtra Election Results are expected to fuel demand in infrastructure, railway and banking stocks as investors may change their stance from defence to aggressive. They advised investors to look at the abovementioned segments from a medium to long-term perspective.
Maharashtra Election Result: Impact on Indian stock market
“After the Lok Sabha Election Results, Indian stock market investors went defensive and started looking at FMCG and pharma stocks. However, after the Maharashtra Assembly Election Result, they may start looking at railway, infra and banking stocks, changing their investment strategy from defensive to aggressive,” said Mahesh M Ojha, AVP — Research at Hensex Securities.
On how this change in stock market strategy would impact railway, infra and banking stocks, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “As the Maharashtra Election Results has established that momentum is still with the incumbent government (both at New Delhi and at Maharashtra). So, investors are expected to look at the rail and infra segment as the Government of India (GoI) and Maharashtra State Government have showcased a special focus on the infrastructure segment. As infra sector companies would go for credit lines from the banks, banking stocks may also see some buying interest when the market opens on Monday.”
Stocks to buy on Monday — Nov 25
Asked about shares to buy on Monday after the Maharashtra Election Result, Mahesh M Ojha of Hensex Securities said, “In the railway segment, one can look at RVNL, IRFC, Railtel, and IRCON International. In the infrastructure segment, Larsen & Turbo (LT) can be a good bet for the medium to long term. Likewise, medium- to long-term investors may look at SBI, Canara Bank, and Jammu & Kashmir Bank shares in the banking space. One can look at ICICI Bank and HDFC Bank shares if they look at the private bank share.”
In short, after the Maharashtra Election Results, experts have recommended buying these ten stocks: RVNL, IRFC, Railtel, IRCON International, SBI, Canara Bank, Jammu & Kashmir Bank, ICICI Bank and HDFC Bank.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.