Stock market not only deals with the financial aspects of the country, but it also reflects a country’s political, social, environmental status. So, the news could impact on stock market fluctuations. This year also no exception, Loksova election cause high volatility in the market. Today’s article covers high return stocks to buy after election 2019.
After-Election Effect in the Stock Market
In the absence of a stable Government, the market volatility rises.
A majority of exit polls for Lok Sabha election 2019 announced that National Democratic Alliance (NDA) is coming back to power. This could be good news for the markets which hope for a stable government at the Centre. Here’s a look at sectors and stocks which are likely to benefit after exit polls predicted Modi government would return to power on the result day May 23.
- Agriculture sector
- Infrastructure sector
- Auto sector
- Banking sector
10 High Return Stocks to Buy After Election 2019
(The following analysis statement is taken from the Moneycontrol site)
State Bank of India:
The asset quality of the bank improves Gross NPA at 7.53 percent in the March quarter in comparison to 10.9 percent recorded in the year-ago period.
The Net Interest Income (NII) of the bank has also improved. It can be expected a return on equity (ROE) of the bank to improve in FY20 on the back of improving asset quality and recovery in the credit growth.
The credit quality has improved much and it can be believed that the bank is on its way to recovery. The underlying loan growth is healthy enough and less risky. The ROE or Return on Equity of the bank should improve significantly in FY20.
The demand for metals should improve on the back of a cyclical recovery in the economy, which we believe will happen after Q2FY20, the valuations are also attractive.
Larsen & Toubro:
The demand for metals must improve on the back of a cyclical recovery in the economy, that will happen after Q2FY20, the valuations are also quite attractive.
Mahindra & Mahindra:
The valuations are quite attractive and will benefit from a recovery in consumer demand and focus on agriculture in the coming years.
Apart from the above, there are also other companies like:
Tata Consultancy Services
These are some of the best picks from the market after election 2019.