Macquarie sees BJP, allies winning 230 seats in elections

Tags: BJP, News
Macquarie says markets are pricing in the opposition Bharatiya Janata Party winning 230 seats

RELATED ARTICLES

in the ongoing elections, calling that its "base case" as well.

Macquarie estimates a number around that range could spark gains of 5-10 percent over one month in Indian shares, while a number above 240 seats would spark 15-20 percent gains.

By contrast, should BJP and allies clinch less than 200 seats, Macquarie says markets could fall 15-20 percent over the next month.

BJP and its allies would need 273 seats to clinch a majority, although analysts say a number near it would comfort markets and raise the prospect of a more stable coalition.

Macquarie says the drivers of a rally after positive elections results could continue to be cyclical sectors such as financials, industrials and infrastructure.

Its top-five recommended cyclical stocks to buy for election results include Larsen & Toubro Ltd (LART.NS), Axis Bank Ltd (AXBK.NS), State Bank of India, Adani Port and Special Economic Zone Ltd (APSE.NS) and IRB Infrastructure Developers Ltd (IRBI.NS).

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Merger of FMC with Sebi could be precursor to a super markets regulator

    Finance minister Arun Jaitley’s decision to merge commodity market regulator FMC with market watchdog Sebi is a welcome step.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Simon J Evenett

Who blinked first, Greece or Germany?

Long dismissed as being stuck in our ivory towers, we ...

Kuruvilla Pandikattu SJ

Human bias towards happiness

There is a universal bias for positive words and ...

Shona Adhikari

Art world celebrates two ‘new’ Cezannes

The focus moves once more to post-impressionist Paul Cezanne, who ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture