Poll jitters? 'Tailor-made' stock portfolio by Ridham Desai

After an enthusiastic response to the exit poll results, bulls are now cautiously awaiting election results of five states to be announced Sunday. Experts feel that the election results in four crucial states may mirror the trend likely to be seen in general elections next year.

Joining the chorus is Morgan Stanley's Ridham Desai who shares the widely held view that a strong general election outcome is a necessary condition for India to cure its macro ills. "To that extent, the market is rightfully focused on this," he says in his report. Desai has created two sets of investment portfolio to play the poll results.

Strong election result basket

Strong flavours: Basket of high-beta, high-leverage, cyclical, strong short momentum stocks likely to outperform as the market gains conviction in a strong poll result.

Picks:

• Axis Bank
• Bank of India
• BPCL
• DLF
• Hindalco
• JP Associates
• JSPL
• JSW Steel
• L&T
• Power Finance
• Tata Motors
• Tata Steel
• Yes Bank 

Strong flavours: Good quality GARP basket,low PEG, high ROE, low beta and strong long-term momentum

Picks

• Bajaj Auto
• HDFC Bank
• HUL
• Infosys
• ITC
• Lupin
• M&M Finance
• Sun Pharma
• TCS
• Tata Motors
• Tech Mahindra
• Zee Entertainment