10 stocks which can give good returns in Modi’s Govt

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The stock market is betting the new government will focus on sectors such as banking, infrastructure, power, highways and telecom to boost growth.

ET has compiled a list of 10 stocks that could benefit the most from a policy push.
Company CMP YTD Return Reason
       
ICICI Bank 1469 33% Lower Inflation & fiscal deficit.
Positive Interest rate perspective
L&T 1525 42% well leveraged to take advantage of a demand uptick if the capital expenditure cycle revives. benefi t from value unlocking in the next 1-3 years.
Maruti 2215 25% Strong competitive position, sharp rebound in volumes driven by consumer sentiment improvement and product launches, potential market-share gains and higher margins.
ONGC 417 46% Subsidy rationalisation and higher gas price
SBI 2569 46% The stock currently trades at a discount to the long period average (LPA). At 25% premium to LPA, the upside potential is 48%; it is 121% to its peak valuation.
HPCL 434 83% lower oil price, which will reduce subsidy losses, and diesel price hikes, which will reduce working capital and interest costs
LIC Housing 335 52% steady growth in NII and reversal of provisions on teaser loans. Besides, margin and asset quality improved on a sequential basis
Motherson Sumi 260 42% strong business franchise, increasing content per vehicle, a likely revival in industry demand and rising exports.
Oberoi Realty 225 -4% good play in the realty sector given visible and relatively small land bank, comfortable debt/equity ratio and better governance and proven execution.
Shree Cement 6255 44% market leader in the northern region

ET 20/5/2014

 

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