After resounding victory of BJP in 17th Lok Sabha elections, the stock market will now put its focus back on fundamental factors coupled with earnings growth. And now one of the big election events behind us, global brokerage firm by June 2020 has placed its targets for Sensex and Nifty at 42,500 and 13,500, respectively.

"This likely continuity in administration is the source of comfort for stocks due to accompanying policy predictability. We expect some shifts in the policy regime, Morgan Stanley said in the report. The company is overweight on stocks from the consumer and industrial space while being underweight on defensive stocks from technology and healthcare.

Another global firm Credit Suisse expert is of the view that earnings are a trigger to the stock's movement and effect of events like an election is only transient. For the FY20, he hails the opinion that banking stocks will be the major earning source for the Nifty and leading 8 banks will contribute as much as Rs. 1 trillion in profit going ahead. The company maintains 'overweight' outlook for heavyweight stocks including SBI, HDFC Bank and ICICI Bank.

CLSA expects mid-caps to perform better as fund flow in the domestic market will improve. The company's bet includes stocks such as ICICI Bank, Axis Bank, HDFC, Ultratech Cements, Bharti Airtel, Reliance Industries and ONGC.

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