Cyclical sectors like banks, industrial, mid-caps to see better investor sentiment post election results: Jefferies
Jefferies reports that the BJP's strong showing in the state elections indicates a potential win in the 2024 national elections. Investor sentiment is expected to improve, benefiting sectors such as banks, industrial, power, property, and mid-caps.
The results of the three state elections for the Bharatiya Janata Party (BJP)—Madhya Pradesh (MP), Rajasthan, and Chhattisgarh—were substantially better than exit polls indicated, said global brokerage Jefferies in its report. This confirmed the general consensus that Modi would win the 2024 national elections, with the BJP likely to win more than 300 seats. Positive signs for domestic cyclical sectors such as banks, industrial, power, property, and mid-caps should result from this improvement in investor sentiment. There is also a blatant display of competitive populism from the Congress and BJP, according to Jefferies.
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