5 stocks that could do well if Modi govt pushes the growth agenda

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The new government under Narendra Modi is likely to lay an emphasis on growth and is likely to push its development agenda. If that happens, a few infra, banking and construction stocks could rally. Here are five stocks that could benefit from improved economic growth.

A thrust on the power sector could benefit the company

Bharat Heavy Electricals Ltd (BHEL) is a power equipment major. In Gujarat, Narendra Modi has ensured that power reaches every village. Now, his govt is likely to take initiatives to boost power production, given the huge shortage the country faces. This should benefit a company like Bhel. The stock could rise from the current levels of Rs 229.

A banking license to benefit the company

IDFC has recently got a banking license. If one holds the stock for the long term, it's highly possible that the stock could appreciate, given that economic growth prospects are likely to improve under the new NDA regime. However, since transformation into a bank is likely to take time, the stock has to be held for the long term. IDFC is currently trading at Rs 124.

NPAs under control

While almost all of the PSU banking stocks are likely to do well under the NDA government, Syndicate Bank has had a better control over its non performing assets, which makes it a better bet. The new govt may infuse fresh capital in the PSU banks, which makes the stocks even more attractive. 

Contrsuction business may get a boost

NCC is engaged in infrastructure projects, development of residential & commercial complexes, serviced apartments, SEZs, integrated townships etc. It's infra business could do well should if the NDA government pushes infra development in ports, roads, bridges etc.

A government owned company

Coal India, a government owned coal mining company is also likely to see a demand push, should there be rapid economic development. The stock has risen in the last few weeks and investors could do well, to buy the stock at lower levels.

Read more about: narendra modi, economic growth, stocks
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