Which Indian stocks will benefit if PM Modi returns to power?

Narendra Modi being reelected as the Prime Minister will likely be a positive for Indian stocks, says Raamdeo Agarwal, the head of Motilal Oswal Financial Services.

Sectors that may benefit from a BJP win

Sectors that Agarwal expects will particularly benefit include railway, defence, and infrastructure.

Return of PM Modi to power will also be constructive for capital goods companies, he added on Saturday.

Elections in India are slated to conclude on Saturday and ballots will be counted on June 4^th.

What to expect from Indian stocks if BJP loses?

While lower turnout has been a reason of concern, the Bharatiya Janata Party (BJP) is still broadly expected to excel in elections 2024.

It is worth mentioning, however, that the benchmark Nifty 50 tanked about 17% within days when BJP faced an unexpected defeat in 2004. Agarwal also said on Saturday:

Note that the Bharatiya Janata Party has proposed a record spending of $133 billion on infrastructure and increasing domestic manufacturing for the financial year 2025. Capital goods companies, infrastructure, and Indian defence stocks have sharply outperformed the Nifty 50 YTD.