Nifty may test 25,800 in run-up to election results, says Prabhudas; picks 17 stocks to buy

The latest target is an upward revision from the previous target of 25,363. The new estimated target is a 3,660 points gain over the Friday closing of 22,147.

Prabhudas sees June as a turning point not just from a political uncertainty front but also on the monsoon front as it will be clearer by then as to who assumes power in the Centre along with the monsoon season turnout.

Off its lifetime high of 22,776 by 4%, Nifty's decline comes on the back of rising geopolitical uncertainty, rising crude and commodity prices and conflicting views on expected US Federal Reserve interest rate cuts.

While India is in the midst of General , which PL termed as "the most important event of this decade", the brokerage's analysis showed that the economy and markets have done well under both the NDA and UPA (INDIA) given strong tailwinds of demographics.

The first phase of polling for 102 seats across 21 states was on April 19, Friday.

While opinion polls predict an NDA win, a 2004-like election outcome - where the then government led by former PM Atal Bihari Vajpayee lost - could be a shocker in PL's view. It maintained that the markets are not prepared for such a scenario. The BSE Sensex declined 15.5% on election result day on May 17, 2004.

The brokerage highlighted how NDA scores over the UPA in implementing key reforms and focus on infra development.

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