TCS, Axis Bank to HUL: 'These 30 shares to perform well irrespective of Lok Sabha election results'
Indian stock market. Prabhudas Lilladher, a leading brokerage, foresees sectors like FMCG, Auto, Healthcare, IT Services, Private Banks, and Capital Goods as a 'perfect hedge' against the election results, slated for 4th June 2024.
The brokerage advises investing in 30 stocks from these sectors, regardless of the election outcome, to mitigate potential volatility. Prabhudas Lilladher asserts that the performance of sectors such as FMCG, Auto, Healthcare, IT Services, Private Banks, and Capital Goods is expected to remain robust, irrespective of the political regime.
These sectors are touted as a prudent defensive hedge against the uncertainty of election results, providing investors with a sense of stability. On why we should be bullish on the above-mentioned segment irrespective of the Lok Sabha poll outcome, Prabhudas Lilladher's report said, "We expect continuation of policy if NDA comes back to power, and themes around Infra, Defence, CG, New energy, Tourism, etc.
will continue to do well. Consumer, 2W, and Tractors can get a boost from green shoots in rural demand and expectations of normal monsoons." On what if there is a surprise on 4th June 2024, the Prabhudas Lilladher report said, "Unexpectedly if INDIA alliance comes to power, it will lead to de-rating in markets and specific sectors like defence, capital goods, tourism, PSU's (including Banks), drones, AMC, wires and cables, plastic pipes and EMS.
PL believes sectors like FMCG, retail, 2W, PV (entry-level), tractors, real estate, logistics (Ecom centric) and consumer durables will benefit from expected policies. Markets have been nervous for the past couple of weeks on account of an unexpected repeat of UPA victory in 2004 that resulted in a 15% decline in
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