PM Modi unveiled the Bharatiya Janata Party's (BJP) Manifesto "Sankalp Patra" for the forthcoming Lok Sabha Elections of 2024, on Sunday, April 14.
With PM Modi running for a record-breaking third term, the BJP has set a goal of 370 party seats and 400 for the National Democratic Alliance (NDA). On April 19, the seven-phase Lok Sabha Election 2024 will get underway, and on June 4, the results will be declared.
Brokerage Phillip Capital in its latest report, stated that the BJP's next-term strategy, which PM Modi outlined in their manifesto, intends to significantly expand manufacturing, exports, MSMEs, employment, rural incomes, and the empowerment of women and youth in addition to physical and digital infrastructure. It will prioritise housing, defense, railroads, aircraft, electricity, roads, electric vehicles, etc. under the infrastructure domain. Future policies shall be guided by sustainable, technologically advanced, regionally balanced, and internationally united development.
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The brokerage said that although the BJP’s manifestosuggests policy continuity, there is more scope, clarity, confidence, and rigor at work.
The brokerage anticipates that the party will be more proactive in developing policies and carrying them out in its third term. In its next term, it is also expected to carry out policies that were established under the previous administration. Over the next five years, a broad emphasis across all industries and segments is anticipated.
“Thus, we remain bullish on India’s economy and equities with a long-term perspective. We expect the country’s economy at US$ 6.7tn and the Nifty 50 at 40,000 by FY30, "said Phillip Capital in its report.
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According to the brokerage, based on BJP Manifesto the following sectors will benefit: autos (EV play + income play + penetration); cement; metals + pipes; real estate; alternative fuels (solar, ethanol, hydrogen); financials (PFCs, NBFCs, PSBs); pharmaceuticals (CDMO); FMCG; EMS; hotels; and airlines.
The brokerage is certain that the BJP would use every effort to position India as a hub for global manufacturing. It thinks it would benefit auto suppliers that now provide to international OEMs, such as Motherson and Sona BLW. To promote EV adoption, it will make investments in building a national infrastructure of EV chargers. Beneficial for companies like Tata Motors and TVS Motor that have a fair amount of experience in the EV market.
The brokerage claims that the extension of the Mudra loan cap will benefit PSBs, SFBs, and MFIs. Since most of these homes are part of government programs for the impoverished, for which HUDCO provides funding to the implementing authority, the extension of the PM Awas Yojana would benefit HUDCO (NR).
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In its analysis, the brokerage stated that the NDA government has made great efforts to spread the CGD network throughout the nation since taking office. The CGD network now covers about 250 geographic regions, meaning that 99% of the nation's population and land area is covered by it. This was achieved in the previous ten years. 320 million LPG connections exist as of as now, compared to about 11 million PNG-Domestic connections.
According to the brokerage perspective, since these licenses have already been issued, work has already begun, and some ordering has already been completed in accordance with the minimum work program that holders of CGD licenses are required to adhere to. But there will also be additional demand.
This action will also positively impact the nation's natural gas (LNG) imports and usage. This suggests that in addition to CGD participants, players like GAIL and PLNG will also profit more from this.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.