Nomura bets on improved foreign flows, lists out Modi 3.0 sectors to bet on exit poll euphoria

Analysts at Nomura remain optimistic about sectors such as Infrastructure, Cement, and Private Banks, expecting them to perform well under the potential new government.

Expect Indian stock market to react positively if the exit poll results translate to actual outcome, international brokerage Nomura said on June 3. The potential of a stable government by the BJP-led NDA - as being forecasted - is expected to enhance Foreign Institutional Investor (FII) flows into India, it added.

This would be a sentimental positive for capex stocks, assuming the exit poll results are mirrored in the actual election results, Nomura said.

The other key sectors likely to be in focus are Electricity and Agriculture, anticipated to benefit from the predicted political stability. Analysts at Nomura remain optimistic about sectors such as Infrastructure, Cement and Private Banks, expecting them to perform well under the new government.

Follow our market blog to catch all the live action

Conversely, the outlook for the IT and Chemicals sectors is negative, with these industries expected to face challenges regardless of political outcome. The consumer sectors are seen as Neutral, indicating that they may not experience significant impact from the election results either way, according to Nomura.

Also Read: Ideas to bet on, after the Exit Poll findings

The benchmark indices - especially the 50-share Nifty index - could see a 500-600 point rally in a single day, riding on the exit poll euphoria.

Also Read: Why Nilesh Shah of Kotak believes FIIs will have to come back

Market experts believe that there is a combination of factors that are hinting at a huge upside on June 3 as the exit poll findings come close to the heels of strong GDP numbers and the recent build-up of FII positions in the derivatives side, which, given the prevailing sentiment, will have to be covered in quick time.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.