If PM Narendra Modi wins election, buy these 7 industrial stocks: Jefferies

Top picks among industrials include L&T, Hindustan Aeronautics (HAL), , ABB, Data Patterns, and . Jefferies' target price of Rs 4,135 on signals an upside potential of up to 33% from Monday's closing price.

Also read |

Given the Modi government's huge push, stocks related to capex have been on top of investor radar.

Earlier, had said the order inflows and expansion in EBITDA margins in capital goods and defence surprised on the upside, indicating strong demand and pricing power.

While the government's agenda likely to be guided by the manifesto, analysts see scope for new priorities, such as urban housing, urban infrastructure, maritime both commercial and defence, drones both agriculture and defence, efficiency capex in the , new energy, especially with a focus on green hydrogen and solar power, scaling up of nuclear power, tourism, skills development, rail freight and logistics coming into fore.

Domestic cyclical sectors such as infrastructure, industrials, defence, capital goods and automobiles are likely to remain major beneficiaries. "In the short term, after the outcome, for next two weeks, we expect the small & mid-cap space could outperform large caps, with domestic cyclical sectors and PSUs in focus," says Sharekhan.

Confident that equity will outperform significantly as an asset class, investors are following multi-year investment themes based around the 3Cs of Capex (Infrastructure, Capital Goods & Real-estate), Capital (Banks & Financials), and Consumption (Discretionary Spending).

Also read |

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)