Most predictions suggest that Modi will be re-elected as Prime Minister for a third term in the 2024 Lok Sabha elections. CLSA also predicts that shares of India’s Public Sector Undertakings (PSUs) will see a rally. A news collection about it.
There is always a correlation between election results and corporate stock prices.
If a party’s election manifesto includes policies for timely economic growth in the country, the share price will automatically rise as the party’s chance of victory increases.
With Prime Minister Modi promising to make India the world’s third-largest economy during his third term as prime minister, share prices are likely to rise after the election, according to a report by investment consultancy CLSA.
Also, it is said that the share price of many companies will rise on the day of the announcement of the election results this year as he has implemented the best plans for economic development throughout his tenure and has a draft plan for the next 5 years.
It is the personality of the leader who leads the country that determines the ups and downs in the stock market. If the leader is a good personality and influential, his leadership will attract more foreign investments into the country.
It is also said that the progress of the Indian stock market will rise to an unprecedented level as the world appreciates the leadership of Prime Minister Modi.
The report pointed out that PSUs have outperformed other private companies in the Indian stock market over the last six months and the same trend will continue after the 2024 elections.
Specifically, L&T, NTPC, NHPC, PFC, ONGC, IGL, and Mahanagar Gas Shares, HDFC, ICICI, Axis Bank and banks like IndusInd, Ashok Leyland, Ultratech, Bajaj Finance, Max Financials, Zomato and Demart. In the equities and telecom sector, shares of Bharti Airtel, Indus Towers and Reliance Industries are likely to gain, the CLSA report said.
In both 2014 and 2019, stock prices hit record highs on Election Day. Economists expect the same to happen this year.
In general, Ambani, Adani, Tata, shares are said to rise in price. These days, it is called PM Modi stocks as the industry is doing well under PM Modi’s rule.
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