On April 14, Sunday, PM Modi launched the Bharatiya Janata Party’s (BJP) “Sankalp Patra” manifesto for the next Lok Sabha Elections of 2024.
BJP Manifesto: The BJP has set a target of 370 party seats and 400 for the National Democratic Alliance (NDA), with PM Modi seeking a record-breaking third term. The Lok Sabha Election 2024 will take place in seven phases, starting on April 19 and ending on June 4, when the results are announced.
According to a recent report by brokerage Phillip Capital, the main goals of PM Modi’s manifesto for the BJP’s next term are to build physical and digital infrastructure, as well as to dramatically increase employment, MSMEs, manufacturing, exports, rural incomes, and the empowerment of women and youth. In the infrastructural area, it will give priority to things like housing, defense, railroads, airplanes, energy, roads, and electric cars. Globally coordinated, technologically sophisticated, sustainable, and balanced regional development will shape future policy.
More scope, clarity, confidence, and rigor are at work, according to the brokerage, even though the BJP’s manifesto promises policy continuity.
In its third term, the brokerage expects the party to take the initiative to create and implement policies. It is also anticipated that it will implement measures put in place by the previous administration throughout its second term. A broad focus across all industries and segments is envisaged over the next five years.
Therefore, from a long-term view, we continue to be bullish on India’s economy and equity market. By FY30, the Nifty 50 could be above 40,000 and the national GDP should be about US$ 6.7 trillion, according to a forecast by Phillip Capital.
principal beneficiaries – Sectoral
The brokerage claims that the following industries will profit from the BJP Manifesto: automobiles (EV play + income play + penetration); cement; metals + pipes; real estate; alternative fuels (solar, ethanol, and hydrogen); financials (PFCs, NBFCs, PSBs); pharmaceuticals (CDMO); FMCG; EMS; hotels; and airlines.
Automobile
The brokerage is confident that the BJP would do all within its power to establish India as a global manufacturing powerhouse. It believes that it would help auto suppliers like Motherson and Sona BLW that now supply foreign OEMs. It will invest in developing a nationwide network of EV chargers in order to encourage the use of EVs. advantageous for businesses with some experience in the EV sector, such as TVS Motor and Tata Motors.
Banks
PSBs, SFBs, and MFIs are supposed to gain from the extension of the Mudra lending cap, according to the brokerage. The extension of the PM Awas Yojana would help HUDCO (NR) because the majority of these homes are a component of government programs for the destitute, for which HUDCO gives financing to the implementing authority.
Vitality
According to the brokerage’s study, since assuming office, the NDA government has worked hard to expand the CGD network across the country. About 250 geographic regions are currently covered by the CGD network, which means that 99% of the country’s geographical area and population are covered. This was accomplished in the ten years prior. There are currently 320 million LPG connections, compared to roughly 11 million PNG-Domestic connections.
From a brokerage standpoint, since these licenses have already been granted, work has already started, and some ordering has already been finished in compliance with the minimal work program that CGD license holders must follow. There will be more demand, though.
The country’s imports and consumption of natural gas (LNG) will benefit from this move as well. This indicates that players such as GAIL and PLNG will benefit more from this in addition to CGD participants.
(Disclaimer: Businessuncover does not endorse the opinions or suggestions expressed above; rather, they represent the opinions of certain analysts, specialists, and broking firms. It is recommended that investors consult with qualified specialists prior to making any financial decisions.)
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