It adds Asian Paints and InterGlobe Aviation to the Focus List at the expense of Adani Ports and Eicher Motors
If Modi government comes back to power the focus of the market will shift to growth cycle, with RBI expected to be more accommodative, said brokerage firm, Morgan Stanley.
"We set our June 2020 target for BSE Sensex at 45,000 and Nifty at 13,500, an upside of 15 percent from here. We are adding Asian Paints and InterGlobe Aviation to the Focus List at the expense of Adani Ports and Eicher Motors," said Morgan Stanley.
The brokerage said that the risk for equities are mostly global, with oil, US Fed and trade tension, "but our call assumes resolution to the ongoing strain in the financial sector via liquidity infusion and continuing fiscal discipline. "
Morgan Stanley also expects inflation framework (low food prices and positive real rates), fiscal consolidation, infrastructure spending, FDI focus and strong foreign policies to continue if the NDA government reassumes the position at the helm of the country
The brokerage further added that the new administration may focus on increasing cash transfers to poor people, lay emphasis on portfolio flows and work on improving India's external trade social/constitutional reforms.
On May 19, exit polls predicted the NDA may get around 250-300 seats in general elections, which indicates the ruling party may retain their power for another five-year term.Note: An earlier version of this story had mentioned June 20 as the horizon for the Sensex and Nifty targets. It has been corrected to June 2020. Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.