Election: Auto, FMCG, Pharma, IT Stocks: Which Sectors Outlook Positive Regardless Of Poll Results?

In its latest research note, Phillip Capital said, "We remain positive on automation, EVs, defense, railways, logistics, ports, roads, real estate, metals, cement, energy, and financials. From the long-term and structural perspective, we continue to like cyclicals over consumer space (thesis held for 2.5+ years)."

Further, Sharekhan said, "based on the current unanimous possible outcome of a BJP-led government, added, we expect domestic cyclical sectors such as infrastructure, industrials, defence, capital goods an automobiles, to continue to be the major beneficiaries. In the short term, after the election outcome, for next two weeks, we expect the small & mid-cap space could outperform large caps, with domestic cyclical sectors and PSUs in focus. After that, in the run-up to the Union Budget 2024-25 (to be presented in the first week of July 2024), there might a possibility of profit booking with anxiety around tax overhaul, while lagging sectors such as Pharma, FMCG and IT would outperform."

So, here are some sectors that will not be impacted by the election results, according to the six portfolio managers

1. Automobile

Few popular automobile stocks under actively managed MF schemes are

Maruti Suzuki India, the number of schemes holding the stock are 277, the company recently announced a price reduction for various models in its Auto Gear Shift (AGS) lineup in a filing with the exchanges.

Tata Motors, the number of schemes holding the stock are 212, the company has recorded a 2% rise in total wholesales at 76,766 units in May in contrast to 74,973 units in the same month last year.

Mahindra And Mahindra, the number of schemes holding the stock are 197, the company saw a 4.81% Intraday Gain, 5-Year Returns Soar to 278.19%.

2. Power

India's power sector is anticipated to witness a strong expansion in the fiscal year 2025, indicating a healthy demand surge of around 6.0 per cent, albeit with a slight moderation compared to the previous fiscal year. Few popular power stocks under actively managed MF schemes are-

NTPC, the number of schemes holding the stock are 310, the stock price stands at Rs.389.65, 3-Month Returns at 8.76%.

Power Grid Corporation Of India, the number of schemes holding the stock are 155, the company touched a record high of Rs 346.90 on the Bombay Stock Exchange (BSE). the stock surged by 10%.

Tata Power Company, the number of schemes holding the stock are 85. The market capitalization for the company stands at ₹139644.6 crore. The 52-week high is ₹464.3 and the low is ₹211.75. The BSE volume for the day was 938077 shares.

3. Consumer Goods

Consumer goods stocks bolstered as evidenced by the NGX Consumer Goods Index registering a 1.19 per cent month-to-date gain. Notably, Dangote Sugar witnessed a significant uptick of 20.82 per cent, while International Breweries surged by 27.40 per cent. Few popular Consumer Goods stock under actively managed MF schemes are-

Nestle India, the number of schemes holding the stock are 107. The company dates back to 1912, when it began trading as The NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

Varun Beverages, the number of schemes holding the stock are 107. In the financial year 2023, Varun Beverages witnessed a significant revenue surge, rising by 21.88% to reach 16,321 crores, compared to 13,390 crores in FY 2022.

Jubilant Foodworks, the number of schemes holding the stock are 87. The company recorded consolidated net sales of Rs 1594.13 crore for the quarter ending on March 31, 2024, marking a 15.33% increase from the previous quarter's Rs 1382.27 crore and a 23.61% rise from the year-ago quarter's Rs 1289.6 crore.

All eyes are now on the most significant event of the past five years-the outcome of the Lok Sabha election, scheduled for Tuesday. Before that, market participants will react to the exit polls on Monday, says Santosh Meena, Head of Research, Swastika Investmart Ltd.

While the majority of market participants believe that the NDA alliance will secure a majority, foreign investors and many HNI traders remain on the sidelines ahead of this pivotal event.

She added, consequently, the market is approaching the event with caution, and the positive surprise from exit polls can lead to a rally as the majority of the exit polls are giving 350+ seats to the NDA. Conversely, a negative surprise from actual results might trigger a knee-jerk reaction in the market.

4. Technology

The muted demand landscape for Indian IT players might persist in the short run, yet analysts are optimistic about emerging green shoots that could foster sectoral growth in the medium to long term. Few popular Consumer Goods stock under actively managed MF schemes are

Infosys, the number of schemes holding the stock are 347. The stock price fluctuated within the range of 1411.78 and 1405.43 levels today. The market capitalization reached ₹582278.32 crore. Its 52-week high was ₹1721.29, while the 52-week low was ₹1255.22. Trading on the BSE saw a volume of 692017 shares exchanged.

Tata Consultancy Service, the number of schemes holding the stock are 272. Tata Consultancy Services experiences a modest 1.15% uptick in price, with the EMA3 standing at Rs 3776.38. The last traded price settles at 3706.0. Its market capitalization reaches 1328181.84, accompanied by a trading volume of 1031778. The price-to-earnings ratio rests at 28.93, with earnings per share at 126.88.

HCL Technologies, the number of schemes holding the stock are 199. HCL Technologies continues to lead the industry in FY24, showcasing robust growth with a noteworthy year-on-year USD revenue increase of 5.4%.

5. Insurance

The stocks have performed very well. During the October-December quarter, several insurers recorded double-digit profit growth. Life Insurance Corporation of India reported a substantial 49 percent increase in profit, while HDFC Life saw a 16 percent rise in earnings.. Few popular Insurance stock under actively managed MF schemes are-

SBI Life Insurance Company, the number of schemes holding the stock are 173. SBI Life Insurance Company experiences a marginal increase in its current price following a three-month decline. The market capitalization stands at 138843.17, with a trading volume of 422592. The price-to-earnings ratio is recorded at 73.32.

Max Financial Services, the number of schemes holding the stock are 130. Max Life announces its record-breaking Participating (PAR) Bonus of Rs. 1,826 Crore* for 21 lakh qualifying policyholders.

ICICI Lombard General Insurance, the number of schemes holding the stock are 127. In Monday's trading session, shares of ICICI Lombard General Insurance Company Ltd. rose by 1.06 percent to reach Rs 1596.05. The return on equity (ROE) for the stock was recorded at 15.72 percent.

6. Fertilizers And Chemicals

India's chemicals market, valued at USD 220 billion in 2023, is projected to surge to USD 383 billion by 2030. This growth trajectory is supported by an anticipated Compound Annual Growth Rate (CAGR) of 8.1 percent from 2021 to 2030. Few popular Fertilizer and Chemical stock under actively managed MF schemes are-

Coromandel International, the number of schemes holding the stock are 69. Coromandel International Ltd's shares surged by 1.87 percent, following the announcement of the launch of 10 new crop protection products aimed at enhancing crop yield, managing pest infestations, and fostering agricultural practices.

Paradeep Phosphates, the number of schemes holding the stock are 16. Paradeep PhosphatesYear-on-year, the company witnessed a 38.45% decrease in the topline alongside a remarkable 115.16% surge in profit. In comparison to the previous quarter, revenue declined by 13.58% while profit experienced an 80.26% decrease.

E.I.D.- Parry, the number of schemes holding the stock are 14. The company is striving to expand its consumer base significantly, targeting high single-digit earnings before interest, tax, depreciation, and amortization (EBITDA) by the close of the decade.

7. Telecom

As per Invest India, the telecommunication industry in the nation stands out as the world's most robust, with a subscriber base reaching 1.17 billion as of September 2023. Few popular Telecom stock under actively managed MF schemes are-

Bharti Airtel, the number of schemes holding the stock are 351. Today, the stock price of Bharti Airtel oscillated between ₹1387.25 and ₹1420. The market capitalization was recorded at ₹789,461.56 crore, with a 52-week high of ₹1407.05 and a low of ₹812.65.

Indus Towers, the number of schemes holding the stock are 81. Telecom infrastructure firm Indus Towers announced a roughly 32 percent increase in its consolidated net profit for the fourth quarter ending March 2024, according to the company's regulatory filing. Last year, it posted a net profit of Rs 1,399.1 crore.

Vodafone Idea, c 79. On the current day, the stock price of Vodafone Idea ranged from a low of ₹15.67 to a high of ₹16.34. The market capitalization was reported at ₹103583.18 crore. The stock's 52-week range spanned from ₹6.98 to ₹18.42.

8. Global Commodities

According to Statista, the nominal value in the Commodities market in India is predicted to hit US$998.30 billion by 2024. It's expected to exhibit an annual growth rate (CAGR 2024-2028) of 1.00%, leading to a projected total of US$1,039.00 billion by 2028. Few popular Global Commodities stock under actively managed MF schemes are-

Hindalco Industries, the number of schemes holding the stock are 202. Hindalco Industries Limited, an Indian company specializing in aluminum and copper manufacturing, operates as a subsidiary of the Aditya Birla Group. Situated in Mumbai, Maharashtra, India, the company's headquarters oversee its operations.

National Aluminium Company, the number of schemes holding the stock are 49. National Aluminium Company announced its Q4 results, revealing a 3.06% decrease in the topline alongside an impressive 101.36% year-on-year increase in profit.

Vedanta, the number of schemes holding the stock are 49. The market capitalization stood at ₹166,895.46 crore, with a 52-week high of ₹506.85 and a 52-week low of ₹207.85.

9. Pharma

According to the report, the Indian pharmaceutical sector witnessed an 8% growth in revenue during FY24. However, there was a slight decline of 3.6% in the last quarter of FY24 compared to the previous quarter. Few popular Pharma stock under actively managed MF schemes are-

Sun Pharmaceuticals Industries, the number of schemes holding the stock are 282. Sun Pharma's stock witnessed a slight uptick today despite experiencing a three-month decline. The market capitalization is noted at 350254.92, with a trading volume of 811855. The price-to-earnings ratio stands at 36.57, accompanied by earnings per share of 39.91.

Cipla, the number of schemes holding the stock are 168. Cipla Limited, headquartered in Mumbai, is an Indian multinational pharmaceutical company. Its primary focus lies in developing medications to address a wide spectrum of medical conditions including respiratory disease, cardiovascular disease, arthritis, diabetes, depression, and various other ailments.

Lupin, the number of schemes holding the stock are 127. The pharmaceutical firm disclosed a 52% year-on-year (YoY) surge in its consolidated net profit, reaching Rs 368 crore for the quarter ended March 2024. In comparison, it stood at Rs 242 crore in the corresponding quarter of the previous year.

10. Manufacturing

India's manufacturing sector witnessed a slight easing, reaching a three-month low in May. The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, declined to 57.5 in May, down from April's 58.8, falling below a preliminary estimate of 58.4. Few popular Manufacturing stock under actively managed MF schemes are-

Reliance Industries, the number of schemes holding the stock are 5. Reliance Industries observed a 3.64% price surge today, although its three-month returns experienced a slight dip by -1.12%. The market capitalization stands at 1935648.47, with a trading volume of 5160838. The price-to-earnings ratio is noted at 27.8, accompanied by earnings per share of 102.9.

Hindalco Industries, the number of schemes holding the stock are 5. Hindalco Industries Limited, an Indian company specializing in aluminum and copper manufacturing, operates as a subsidiary of the Aditya Birla Group. Situated in Mumbai, Maharashtra.

Samvardhana Motherson Inter, the number of schemes holding the stock are 5. Auto components manufacturer Samvardhana Motherson International Ltd reported a significant increase in its consolidated net profit for the fourth quarter ended March 2024, with a two-fold jump to Rs 1,444 crore.