During the election season, PSU stocks, also known as Modi stocks , surged in value by Rs 7 lakh crore as investors showed confidence in PM Narendra Modi s policies and leadership, especially in defence PSUs like Cochin Shipyard and Bharat Dynamics.
India Business News: The list of election season winners is dominated by shares of defence PSUs, which are among the primary beneficiaries of PM Modi's 'Aatmanirbhar Bhara
Vikash Kumar Jain, an Investment Analyst at CLSA, discusses the impact of domestic inflows and the upcoming elections on the Indian market. He highlights the limited impact of a couple of billion dollars of inflows and emphasizes the need for further market support. He also mentions that the potential importance of the budget and post-election flows for driving market excitement.
Vikash Kumar Jain, Investment Analyst at CLSA, discusses the underweight on IT and overweight on banks. Banks offer interesting valuations and are closely linked to India s medium-term story. The PSU rally needs selectivity. There are various reasons to believe that the Indian market would gain significance in the global investing scene over the coming years and an emerging market rally will be a key opportunity.