The BJP led NDA government is back with a bang in power with a massive mandate and the stock markets have responded positively to this by breaching new highs. At this juncture, one important question raging across the minds of most investors is “which are the best stocks to buy for next 5 years?’’
The result of 2019 general-elections was a very important win for the incumbent government who have initiated many reforms over various sectors to uplift the structural foundation of the Indian economy.
This massive victory of Modi led NDA signifies not just the end of political uncertainty but also means the additional reforms in the pipeline. Surely this is the right climate for the investors to a look for the best stock to buy and build a strong portfolio for the next five year. But rather than looking for the best stock to buy, investors should look at the bigger picture as to which sectors are likely to benefit the most from government’s policies the most in the next 5 years.
The best clue to sectors which will outperform in the next 5 years can found in BJP’s poll manifesto.
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Some key points announced in BJP’s poll manifesto for 2019 general elections:
- Rs 100 lakh crore to be spent on infrastructure in 5 years
- National Security – Strengthening Armed Forces
Let’s take a detailed look at each of these promises and businesses which will benefit from them:
Rs 100 lakh crore to be spent on infrastructure in 5 years
In its poll manifesto for 2019 elections the BJP had announced that the government’s primary focus would be on infrastructure development which will includes water grids, modernization of railways, construction of 60,000 kms of national highways and way side amenities along national highways, increasing the number of regional airports and port capacities.
The poll manifesto also mentioned urban development by in the form of new townships and urban centres.
These massive push in infrastructure will be beneficial for businesses operating in the cement, construction, capital goods & engineering sector. Hence some of the best stock to buy can be found in these sectors.
National Security – Strengthening Armed Forces
India is one of the world’s biggest importer of defence equipment. Government wants to change this by encouraging domestic arms production through private sector through Make in India scheme.
According to industry experts the new government is planning to spend over $ 130 billion for modernizing the Indian armed forces over the next 5 years.
A major chunk of these projects will be bagged with top defense equipment manufacturers in India with the expertise in manufacturing small arms, ammunition, artillery shells/guns, air defence guns, combat vehicles, missile parts, naval equipments, aerospace and communications equipments. Hence some of the best stock to buy can be found in these sectors.
India’s transformation to an economic superpower is imminent in the next 5 years. Infrastructure and defence sector will gain the most over the next 5 years and hence making these sectors hot picks where one can find many best stock to buy.
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