Synopsis : PM Modi revealed the BJP's 2024 election manifesto, outlining ambitious goals for party and alliance seats. Phillip Capital analyzed the manifesto, foreseeing proactive policy implementation and positive long-term economic growth. The manifesto emphasizes economic expansion, infrastructure development, and sustainability. Sectorally, autos, banking, and energy are expected to benefit from proposals like EV adoption and CGD network expansion.
On Sunday, April 14, PM Modi revealed the Bharatiya Janata Party's (BJP) Manifesto "Sankalp Patra" for the upcoming Lok Sabha Elections of 2024.
With PM Modi seeking a historic third term, the BJP has set ambitious targets of securing 370 seats for the party and 400 for the National Democratic Alliance (NDA). The Lok Sabha Election 2024, spanning seven phases, will commence on April 19, with results announced on June 4.
Phillip Capital, in its recent report, outlined the BJP's strategy for the next term, as articulated by PM Modi in their manifesto. The strategy aims to significantly enhance manufacturing, exports, MSMEs, employment, rural incomes, and the empowerment of women and youth. Additionally, it prioritizes the development of physical and digital infrastructure, including housing, defense, railways, aircraft, electricity, roads, and electric vehicles. Future policies are envisioned to be sustainable, technologically advanced, regionally balanced, and internationally cooperative.
The brokerage observed that while the BJP's manifesto indicates policy continuity, there's a notable increase in clarity, confidence, and rigor. It anticipates a more proactive approach to policy development and implementation in the party's third term, along with the continuation of established policies from the previous administration. A broad emphasis across all industries and segments is expected over the next five years.
Phillip Capital remains optimistic about India's economy and equities in the long term, forecasting the country's economy to reach US$ 6.7 trillion and the Nifty 50 to touch 40,000 by FY30.
Sectoral Outlook
Based on the BJP Manifesto, Phillip Capital identifies several sectors poised for growth, including autos (particularly in electric vehicles, income, and penetration), cement, metals, real estate, alternative fuels (solar, ethanol, hydrogen), financials (PFCs, NBFCs, PSBs), pharmaceuticals (CDMO), FMCG, EMS, hotels, and airlines.
Automobile Sector
The brokerage foresees India being positioned as a global manufacturing hub under the BJP's agenda, benefiting auto suppliers catering to international OEMs. Investments in EV infrastructure are expected to boost EV adoption, favoring companies like Tata Motors and TVS Motor with expertise in the EV market.
Banking Sector
The extension of the Mudra loan cap is predicted to benefit PSBs, SFBs, and MFIs. Additionally, the extension of the PM Awas Yojana is seen as advantageous for HUDCO (NR), as it supports government programs aimed at poverty alleviation.
Energy Sector
Major beneficiaries - Stocks
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