With a breathtaking rally resulting in two consecutive upper circuit filters in stock markets on Monday morning, investors are eyeing sectors that could be beneficiaries of policies likely to be unveiled by the UPA government. Most market participants are expecting shares of infrastructure companies and banks to lead the bull charge, given the key role of these sectors in the revival of India’s economic growth, which is considered the top priority of new UPA government to be formed soon. Here are few large cap stocks to buy that could be benefited by these new policies.
Hero Honda:
Boost to rural income will further raise demand for entry-level bikes. This is expected to benefit Hero Honda significantly
Checkout: Hero Honda - Best stock to invest in two wheeler auto sector
Maruti Suzuki:
Rising rural prosperity and improvement in rural road network will boost car ownership
State Bank of India:
The default banker to the govt with the widest branch network, SBI will gain from any govt policy
Read: State Bank of India (SBI) - Elephant in Banking sector
Best stocks to buy now are banking stocks
Bharti Airtel:
Likely to gain from government initiatives to widen telecom network in the country
Checkout: Bharti Airtel - Buy Stocks Research Reports From Sharekhan & IIFL
Tata Communication:
UPA promises to cover the entire country with broadband services in the next 3 years. Tata Comm’s Wimax will play a major role
Rural Electrification Corp & PFC:
The govt programme will boost these companies in providing electricity to every household
ACC & Grasim:
Being India’s largest cement makers, these companies will be direct beneficiaries of the govt policy to expand rural infrastructure
Crompton Greaves:
Investment in rural electrification to increase demand for transmission & distribution products
SAIL & Tata Steel:
Being two of India’s largest steel producers, these companies will gain from continued growth in rural demand for steel and allied goods
Hindustan Unilever & Tata Tea:
Rising rural prosperity to push up demand for personal care products and FMCG
Checkout: Best FMCG Companies - Stocks to Invest in 2009
Cipla & GlaxoSmithkline Pharma:
To gain from the govt programme to expand healthcare facilities in the country
Rashtriya Fertilisers & Chemicals:
UPA promises to achieve food security by enacting a Right To Food Act. This will need a significant increase in foodgrain production, raising demand for fertilisers and pesticides
L&T:
Being India’s leading engineering and infrastructure company, L&T will gain from any govt plan to expand infrastructure
Mahindra & Mahindra:
M&M will be a prime beneficiary of growth in rural economy, being the largest maker of tractors & utility vehicles
Jain Irrigation:
Will gain from the government plan to bring more farm areas under micro irrigation
Educomp:
Will gain from government plan to further step up investment in school and higher education
Areva T&D:
The company is likely to play a big role in the development of nuclear power in India
NTPC & BHEL:
The companies will be prime beneficiaries of a government plan to aggressively expand power generation in the country
