Top Stocks to Watch as Rakesh Jhunjhunwala Bets on Modi for 2019

Rakesh Jhunjhunwala, the famous investor recently made a statement that there is no credible leader in India except PM Modi, hence the bets are high that in the next elections also the BJP government will rule the roost. If that is to be believed, let’s study investment which stocks is expected to offer stellar returns.

Power Stocks

The government initiatives to spruce the power sector and the recently launched schemes like Pariwartan scheme wherein the government plans to take over the stressed power projects totaling 25,000 megawatts under the asset management company signify that power stocks would remain on Narendra Modi’s radar.

Another schemes like Kusum that focuses on promoting the use of solar power, Samadhan scheme for stressed power projects gives us the re-assurance that the investment in the power stocks will pay.

Stocks to focus on-NTPC, Torrent Power, Tata Power, Adani

Pharma stocks

There is a reason for happiness for the pharma sector as the government is constantly launching several schemes like Ayushman Bharat to uplift the pharma sector. Even the government of India is in talks with the Chinese government to expedite the drug approvals in less than 12 months, currently it takes around five years to get an approval in the Chinese market. This shows Narendra Modi’s government is doing the level best to revive the pharma sector.

Stocks to focus on- Sun Pharma, Dr. Reddy, Granules India

Housing sector

Recently, PM Modi announced that the carpet area would be increased under its Housing for all scheme to add more subscribers under it. Even the RBI has revised the amount under the priority sector lending under the Pradhan Mantri Awas Yojana to Rs 35 lakh in metro cities and 25 lakhs in other cities provided that the cost of living doesn’t exceed beyond Rs 45 lakhs and Rs 30 lakhs respectively. This scheme stems our belief in the fact that the housing sector is sure to reap the benefits in future.

The amendment in insolvency and bankruptcy code further makes us believe that the government is against fly by night real estate developers.

Stocks to focus on – Godrej Properties, HDIL, DLF

Banking

The banking stocks have seen a lot of pressure after the PNB bank fraud and Nirav Modi scam, it left people dubious about their money. The tremors are felt till now. Hence, in order to revive this sector to square one, the government of India has pledged RBI to make a stringent law to curb the ill effects. RBI has now allowed the banks to make mark-to-market losses provisioning for four quarters. It will help the banks to spread the losses. The banks will also now have to create an Investment Fluctuation reserve to protect against the risk in future.

Stocks to focus on- Axis Bank, HDFC Bank, SBI

Automotive

the government of India has announced that it will ease out the norms for high end e-vehicles like cars, bikes, etc, which means that the government wants to make India pollution free. The numbers of electric vehicles plying on Indian roads will double the count.

Stocks to focus on- Mahindra and Mahindra, Maruti Suzuki, Tata Motors

It is believed that if the investor invests in these stocks, definitely he/she will earn high returns, but again it depends upon the quality of investments.