Motilal Oswal Recommends 14 Stocks to Consider After BJP’s Victory in Assembly Polls

Following the Bhartiya Janata Party’s (BJP) decisive triumph in the assembly elections in Madhya Pradesh, Rajasthan, and Chhittorgarh, market experts anticipate a substantial upside in today’s stock market. The Nifty 50 achieved a record high of 20,291 on Friday, reflecting positive sentiments following pro-BJP exit polls. With the BJP securing a comfortable majority in key Hindi heartland states, there is optimism for the Indian stock market to extend the rally witnessed last week.

According to a Motilal Oswal report, the BJP’s strong performance in retaining Madhya Pradesh (MP) with a two-thirds majority and reclaiming Rajasthan and Chhattisgarh from the Congress indicates political stability. The report emphasizes that these results, considered a semi-final to the upcoming Lok Sabha elections in May 2024, provide comfort to the markets. The BJP’s ability to navigate anti-incumbency and secure victories bodes well for the party in the 2024 general elections.

The report states, “Equity markets were justifiably anxious about the outcome of state polls and what it portends for the 2024 general elections. With the outcome overwhelmingly in favor of the incumbent BJP, the confidence of the market in the current dispensation and political continuity post-2024 Lok Sabha elections will get a boost.”

Outlook for the Stock Market:

Motilal Oswal’s report highlights the strength of India’s macro and micro fundamentals, including 7.7% real GDP growth in 1HFY24, robust corporate earnings, supportive global macros, and attractive valuations. The report identifies BFSI, Industrials, Real Estate, Auto, and Consumer Discretionary as sectors likely to deliver stocks with alpha returns.

Stock Recommendations:

Large-cap stocks to buy: SBI, Axis Bank, M&M, Hero Honda, L&T, ULTRATECH, TITAN, Indian Hotels.

Mid-cap stocks to buy: Godrej Properties, LemonTree, Sunteck Realty, PNB Housing, Angel One, Global Health.