General Elections 2024 Stock Picks: IRCTC, SBI among top 10 picks for this season; to offer 10-20% potential upside

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General Elections 2024 Stock Picks: Lok Sabha elections act as one of the key triggers which significantly impacts the market volatility based on corporate announcements, sentiment changes and results of pre-poll surveys. This year’s general election has gained heightened prominence due to India's importance in geopolitics, position in emerging markets, and a contest for PM Modi to form government for the third consecutive term.

According to domestic brokerage firm Shriram Way2Wealth, the reason behind equity markets following the elections, is the fact that investors anticipate a strong capex momentum to continue with PM Modi-led government. ‘’This would bolster investor sentiments and may result in continued rally in PSU sector on the back of rerating seen previously and policy continuation,'' said the brokerage in its report.

Also Read: SBI, M&M, Axis Bank to LT: Motilal Oswal recommends 14 stocks to buy after BJP win in assembly elections Liquidity infusion in rural economies would be a significant catalyst to stimulate rural consumption demand which has been missing for the last few quarters on account of below average monsoon, El-Nino impact, suppressed agri commodity prices, and elevated inflation. Resultantly, rural focused pockets such as FMCG, tractor and agri-equipment manufacturers may remain on investor’s watch list, according to the brokerage.

Another important sector to watch, is the agro- chemical sector which may react positively if the government announces large fertilizer subsidy keeping in view of large agriculture based vote bank ahead of the elections. In the current market scenario, Shriram Way2Wealth has released its top 10 General Elections 2024 stock picks for this election season.