10 Stocks to Ride Modi ‘Wave’
Indian stocks have surged, fuelled by expectations that a BJP-led government, having won the recent elections with a resounding majority, could put the economy back on growth track. The stock market is betting the new government will focus on sectors such as banking, infrastructure, power, highways and telecom to boost growth. Though the market rallied sharply ahead of the poll results, there could still be some steam left in select stocks. ET has compiled a list of 10 stocks that could benefit the most from a policy push. 17.1% in 2006-07, according a recent report from India Ratings. Similarly, foreign expenditure as a proportion of total expenditure increased to 41.8% in 2012-13 from 38.6% in 2006-07, the report said. The rupee’s steady rise is bound to have a profound impact on Indian industry. ET Intelligence Group has picked the sectors and companies that will gain or lose the most from an appreciating rupee. The analysis has left out the IT sector, which is the most obvious sector to suffer due to an appreciating rupee. The domestic pharma industry rejoiced when the rupee fell last year because most of its revenues comes from the US and Europe. The rupee’s U-turn is likely to hurt export revenue earners such as DRL, Lupin, Cipla and Sun Pharma. Ranbaxy and Aurobindo Pharma, which have significant foreign debt, will benefit from any appreciation in the rupee. The rupee’s appreciation is likely to erode the export competitiveness of this industry. Unless this is compensated by a pickup in domestic demand, players such as and could witness margin pressure. Large foreign currency debt of these companies will result in mixed impact.