Share Market Highlights June 05, 2024: Sensex, Nifty settle 3% higher amid broad-based buying on hope of political stability; metal, banking stocks shine; most Adani group stocks gain

Macquarie on verdict

India’s GDP growth trajectory since 1980 has been less influenced by the ruling party

Like large caps : HCLT, SUNP, HUVR, HERO, HDFCB.

Stocks to add in this pullback with a 2-3 year view: Cummins, Bharat Electronics, Delhivery

JEFFERRY’S ON VERDICT:

Cut OWT on real estate, industrials, & PSUs

Buying opportunity-large-cap laggards offer the best risk/reward

OWT pvt banks, consumer staples, auto OEMs

CLSA on Elections Result:

Replace L&T with HCL Tech in India portfolio

Private banks, IT, insurance and commodities are our preferred sectors

Fear de-rating expensive discretionary and capex space

ITC remains preferred staples name

Prefer valuationssupport -Private Bank.

Bernstein on Verdict

Retain view of high single-digit returns, Nifty target 23,500

Financials key OW

Remain UW SMIDs over large caps

Nuvama On Election Verdict

New coalition may be less decisive than the outgoing one

Spending push could shift towards rural (versus capex earlier) in near term

Do not see the new govt backtracking on reforms or resorting to fiscal profligacy

Jefferies on HUL

Upgrade to Buy, TP Rs 2950

Surprise election outcome makes us believe that gov’t will likely adopt a more favourable policy towards consumption, esp rural/BOP

This comes at a time when a few cos pointing to an expected pickup in rural, which augurs well for HUL

Bernstein on Power Sector

It does not matter who govt. power demand in India has grown at 0.8-1x of real GDP growth over last 2 decades

With new use cases of power coming in EVs, Data Centers etc., still see higher probability of power demand

NTPC & Power Grid top picks

Jefferies on Industrials

Siemens, Hindustan Aeronautics, ABB, Thermax, KEI stand out in this context.

L&T has geographical and sector diversification.

NTPC, Power Grid and JSW Energy are key utility plays

CLSA on Defence

Downgrade BEL from Buy to OP, TP Raised to Rs 294

Retain OP on HAL, TP Rs 4731

Expensive val leave little space for execution error

Expect Modi govt to continue to walk-the-talk for defence ‘Make in India’& to execute $43bn in Indian made products during FY24

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