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

21 May 2014 by wealth18.com

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