Capital good sectors
The capital goods sector largely depends on economic growth and passage of large scale infrastructure projects for growth. Over the last few years, many large infra projects have been stalled which has pushed demand for capital goods to new recent lows. Many players in the sector have been a victim of policy paralysis. Companies that are likely to benefit if we have a stable government that goes about pushing growth include the likes of power equipment majors like Thermax and Bhel. Other players like Siemens, Crompton Greaves, Voltas etc., will also benefit.
Like capital goods sector infrastructure sectors is largely dependent on quick clearances of major projects including those in roads, highways, ports etc. The belief is that a stable government would ensure brisk clearances for these projects, considering the significance of it to the economy. Companies engaged in road projects like IRB Infrastructure and companies like NCC are likely to see gains. Also companies like GMR Infra, Gammon Infra and IL&FS Transportation Networks could be the beneficiaries of a stable regime.
If there is a fillip to the infra, capital goods and industrial sector, it's likely that credit off take will improve. This is likely to benefit the banking industry which has been badly hit by non performing assets, thanks to very slow economic growth. Swift clearances for infrastructure projects including those in power, roads, ports, bridges etc., would ensure better credit off take for the banking sector. Major beneficiaries could be the PSU Banking space.
The new government could very well consider a real estate regulator, apart from giving industry status to real estate. In any case a stable government for the next 5 years means real estate prices are headed higher and real estate companies could do well. The beneficiaries would be the large real estate players in India including DLF, Unitech, Sobha Developers, Puravankara, Prestige Estates and Brigade Enterprises.