Market post Lok Sabha elections: Not PSU or railways but these sectors to remain in focus in near term

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Election Results 2024: Here's what to expect from Indian stock market and what should be your trading strategyMarket analysts had anticipated PSU, defence, railways and renewable energy stocks to outperform post elections. However, experts are now skeptical as the election outcomes fell short of expectations, leaving the BJP in a position where it must rely on the NDA alliance to establish a government, causing concern among investors.Brokerage firm Emkay Global recommended investors to switch from PSUs and Capital Goods to FMCG stocks."We see Narendra Modi returning as PM but in changed circumstances.

The broad direction of the economy is unlikely to change, though factor market reform and privatization are off the table. India is likely to now derate due to higher risk perception.

Switch from PSUs and Capital Goods to FMCG and buy Indian equities if the Nifty falls below 20,000 (18x FY25 PER)," the brokerage firm said.Investors are urged to steer clear of PSUs and capital goods sectors as they appear to be the most vulnerable at the moment. However, there's optimism regarding the resurgence of consumption, particularly in FMCG and value retail segments, which are expected to make a robust comeback.

Also read: Election results shocker! PSUs unlikely to re-rate, FMCG, private banks in focus, says PL; lists top stock picksRupen Rajguru, Head Equity Investments and Strategy, Julius Baer India, said that IT and healthcare sectors are also likely to outperform capex oriented sectors.“In the near term defensives (FMCG, IT and Healthcare) will outperform capex oriented sectors. Additionally, some of the sectors with strong narratives - PSUs, Defense, Railways will take a breather and can potentially see some de-rating from the