Importance of Lok Sabha Elections on Market Fluctuations

The Lok Sabha elections serve as a critical factor influencing market fluctuations, influenced by corporate disclosures, shifts in sentiment, and the outcomes of pre-election polls. The current general election has garnered increased attention owing to India’s geopolitical significance, its role in emerging markets, and the competition for Prime Minister Modi’s third consecutive term in office.

The period leading up to elections often presents favourable conditions for engaging with the stock market. As the 2024 elections draw near, market volatility becomes notably high, presenting investors with an opportune moment to capitalise on strategic buying and selling of stocks to optimise their investment portfolios.

Below is a list of eight stocks that show promise for investment Before the 2024 elections, which you can consider incorporating into your portfolio:

Stocks for Investment Before the 2024 Elections

Larsen & Toubro (L&T) Larsen & Toubro Limited stands out as a promising contender for inclusion in your investment portfolio, especially amidst the backdrop of India’s growing infrastructure the sector, which has seen a significant capital infusion reaching Rs 11.1 trillion. Despite experiencing a commendable upswing of approximately 23% over the past six months, Larsen and Toubro are poised for further growth as the demand for infrastructure continues to surge within the nation.L&T has encountered a notable setback with a recent 9% decline in stock price however, it remains a compelling choice among election-oriented stock selections, offering the potential for substantial long-term returns. Presently, the stock is trading at Rs 3,608, boasting a substantial market capitalisation of 4.95L Cr.
Ultratech Cement Amidst the rapid expansion of the infrastructure sector in India, Ultratech Cement emerges as a promising investment option for investors during the 2024 general elections. Despite experiencing relatively slower growth in recent months, the stock is anticipated to undergo a substantial uptick in value soon. Presently valued at Rs 9,700 per share, analysts predict that the stock may surpass the 10,241 mark, positioning it as one of the top choices for investment leading up to the 2024 general elections, particularly during instances of price drops.
HDFC Bank HDFC Bank is India’s leading private-sector bank. It stands poised to benefit from the continued growth of the banking and financial sector within the nation. With the upcoming 2024 general elections on the horizon, investing in HDFC Bank presents a compelling opportunity for several reasons. Currently priced at Rs 1,509, the stock reflects a noteworthy decrease from its 52-week high of Rs 1,757, presenting investors with an attractive discounted rate. Despite the decline in the stock price in recent months, the underlying fundamentals of the company remain robust. Furthermore, following the merger of parent company HDFC Ltd. with HDFC Bank, the stock is anticipated to embark on a transformative trajectory, potentially leading to rapid price appreciation.
State Bank of India (SBI Bank) The State Bank of India is one of the largest banks in India boasting a market capitalisation of Rs 7,15,218 Cr. It holds a robust position within the financial sector. With an impressive track record of strong fundamentals and a consistent uptrend in profits over recent years, SBI emerges as a key candidate for inclusion in your investment portfolio amidst the backdrop of the 2024 general elections. Presently valued at Rs 808 per share, the stock presents an intriguing opportunity for investors. Moreover, should political stability prevail throughout the elections, SBI is poised to potentially witness substantial growth in the post-election period.
Jindal South West (JSW) Energy Limited In the Indian renewable energy sector, Jindal South West (JSW) Energy Limited stands out as a notable player, particularly in the sphere of solar energy generation. With the government’s commitment to bolster investments in the power and renewable energy sectors, evident through initiatives like the “PM Suryodaya Yojna,” stocks like JSW Energy are poised for notable growth in the coming years. Currently valued at Rs 600 per share, JSW Energy has exhibited impressive performance, delivering a remarkable return of 51% over the past six months.
National Thermal Power Corporation (NTPC) Limited National Thermal Power Corporation (NTPC) Limited, boasts a market capitalisation of approximately 3.44 lakh crore. It is a key player in the energy sector and a promising stock to invest in Before the 2024 elections. Given the incessantly growing demand for energy in the nation, NTPC is poised to scale new heights. Currently priced at Rs 357 per share, the stock has demonstrated robust performance, yielding a noteworthy return of 52% over the preceding six months. Anticipations are high for further escalation in its value post-elections.
Indian Railway Catering and Tourism Corporation Limited (IRCTC) Indian Railway Catering and Tourism Corporation Limited (IRCTC) is a great stock to be included in your portfolio during the election period. With a substantial portion of India’s population travelling between cities and villages to participate in the electoral process, the railway sector is poised to witness a notable surge in activity. Currently valued at Rs 1,044 per share, IRCTC has already registered an impressive 57% increase in value over the past six months, further enhancing its appeal as a compelling choice during the 2024 general elections.

Conclusion

To summarize, with the 2024 general elections around the corner, the stock market offers a wealth of potential opportunities for investors. Gainn Fintech is pleased to share its curated list of top stock picks for this election cycle, providing valuable insights into companies positioned for growth amidst the political landscape.

Investing through Gainn Fintech makes accessing the Indian Equity market convenient. Our platform empowers investors to make well-informed decisions by facilitating direct delivery of shares to their demat accounts and ensuring smooth corporate action processes.

By granting access to both the rapidly expanding Indian economy and the world’s largest economy simultaneously, Gainn Fintech facilitates portfolio diversification and allows investors to capitalise on wealth-building opportunities.

With Gainn Fintech, navigating the stock market during the general election season promises to be exceptionally rewarding. We invite you to join us today and embark on a journey towards financial success together.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

Sr.No.	Activity	Expected Timelines
1	KYC entered into KRA System and CKYCR	10 days of account opening
2	Client Onboarding	Immediate, but not later than one week
3	Order execution	Immediate on receipt of order, but not later than the same day
4	Allocation of Unique Client Code	Before trading
5	Copy of duly completed Client Registration Documents to clients	7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6	Issuance of contract notes	24 hours of execution of trades
7	Collection of upfront margins from client	Before initiation of trade
8	Issuance of intimations regarding other margin due payments	At the end of the T day
9	Settlement of client funds	30 days / 90 days for running account settlement (RAS) as per the preference of client. If consent not given for RAS – within 24 hours of pay-out
10	‘Statement of Accounts’ for Funds, Securities and Commodities	Weekly basis (Within four trading days of following week)
11	Issuance of retention statement of funds/commodities	5 days from the date of settlement
12	Issuance of Annual Global Statement	30 days from the end of the financial year
13	Investor grievances redressal	30 days from the receipt of the complaint

Sr.No.	Type of Activity	Timelines for Activity
1	Receipt of Complaint	Day of complaint (C Day).
2	Additional information sought from the investor, if any, and provisionally forwarded to stock broker.	C + 7 Working days.
3	Registration of the complaint and forwarding to the stock broker.	C+8 Working Days i.e. T day.
4	Amicable Resolution.	T+15 Working Days.
5	Refer to Grievance Redressal Committee (GRC), in case of no amicable resolution.	T+16 Working Days.
6	Complete resolution process post GRC.	T + 30 Working Days.
7	In case where the GRC Member requires additional information, GRC order shall be completed within.	T + 45 Working Days.
8	Implementation of GRC Order.	On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued immediately or as per the directions given in GRC order.
9	In case the stock broker is aggrieved by the GRC order, will provide intention to avail arbitration	Within 7 days from receipt of order.
10	If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs	Investor is eligible for interim relief from Investor Protection Fund (IPF). The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor.
11	Stock Broker shall file for arbitration	Within 6 months from the date of GRC recommendation
12	In case the stock broker does not file for arbitration within 6 months	The GRC order amount shall be released to the investor after adjusting the amount released as interim relief, if any.

Sr.No.	DOs	DON’Ts
1	Read all documents and conditions being agreed before signing the account opening form.	Do not deal with unregistered stock broker.
2	Receive a copy of KYC, copy of account opening documents and Unique Client Code.	Do not forget to strike off blanks in your account opening and KYC.
3	Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.	Do not submit an incomplete account opening and KYC form.
4	Receive all information about brokerage, fees and other charges levied.	Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
5	Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.	Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker.
6	If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted.	Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
7	Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades.	Do not opt for digital contracts, if not familiar with computers.
8	Receive funds and securities / commodities on time within 24 hours from pay-out.	Do not share trading password.
9	Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges.	Do not fall prey to fixed / guaranteed returns schemes.
10	Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90 days).	Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
11	In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.	Do not follow herd mentality for investments. Seek expert and professional advice for your investments.

Sr.No.	Guidance
1	Always deal with a SEBI registered Depository Participant for opening a demat account.
2	Read all the documents carefully before signing them.
3	Before granting Power of attorney to operate your demat account to an intermediary like Stock Broker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
4	Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary.
5	Accept the Delivery Instruction Slip (DIS) book from your DP only (pre- printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips. Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders. Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s). Do not leave your instruction slip book with anyone else. Do not sign blank DIS as it is equivalent to a bearer cheque.
6	Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system
7	Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
8	Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
9	Do not share password of your online trading and demat account with anyone.
10	Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
11	Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
12	Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
13	If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html
14	Keep a record of documents signed, DIS issued and account statements received.
15	As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
16	Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
17	Register for Depository’s internet based facility or download mobile app of the depository to monitor your holdings.
18	Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
19	Do not follow herd mentality for investments. Seek expert and professional advice for your investments
20	Beware of assured/fixed returns.

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