How India grew under various PMs since 1951

Ritesh Presswala, Riken Mehta 
moneycontrol.com 

Follow me on Twitter @mehtariken

The verdict is out. BJP has created history and is set to form the government at the Centre for the next five years, replacing the UPA who was at the helm for last 10 years. Narendra Modi is set to become the first prime minister who was born in independent India. This is the third time that BJP will lead the country after Atal Bihari Vajpayee's stint in 1996 and 1998-2004. The Indian economy is grappling with series of problems like poor infrastructure, stalled projects, high inflation and job creation. The GDP growth is now at decade low and the nation expects Narendra Modi to revive it in his term. Let us see how India grew under various Prime Minsters since 1951.

Graphics by Ganesh Govalkar

What to buy if Narendra Modi comes to power?

Riken Mehta
Moneycontrol.com

Follow me on Twitter @mehtariken

The judgement day is here and market is buzzing with various scenarios and probabilities of how many seats will the Modi led BJP and NDA alliance will be able to get in the Loka Sabha elections 2014. While most exit polls predict the formation of NDA led government with majority, markets will react to final numbers today. Prominent brokerage houses are out with their shopping list for investors if Narendra Modi comes to power. The consensus top stock recommendations by brokerages are  ICICI Bank, Axis Bank, SBI, L&T, Maruti and Reliance Industries.

CLSA 

CLSA in its note to clients said, “NDA will be able to form the next government without much trouble which will be positive for investment plays like ICICI bank, Axis, SBI and L&T. We expect market to remain in consolidation phase in the short term after election. The next government will have the difficult task of managing inflation, fiscal deficit and weak monsoon,” added CLSA.

Axis Capital 

Axis Capital recommends to buy Maruti, ICICI Bank, SBI, HDFC, L&T, Coal India and Sesa sterlite from the Nifty basket. The broking firm also advises to buy REC, PFC, Shriram transport, JSW Energy, Bajaj Finance, Eicher, Motherson Sumi and LIC Housing finance. Capital raising candidates like Aban Offshore, Adani Power, GMR Infra, GVK Power and Idea cellular are also likely to benefit from it.

Macquarie   

Macquarie expects the market rally to continue and in best case scenario market may see 15-20 percent upside. The brokerage house believes an absolute majority for NDA might lead to PE re-rating to 16-17 multiple from the current level of 14. Top picks are L&T , SBI , Axis bank , IRB and Adani Ports, said Macquarie.

Bank Of America Merrill Lynch 

Bank Of America Merrill Lynch expects another 8% return by year end. The broking house has year end target of 25500 on the Sensex. The growth will gradually recover to 5.4 percent in FY15 and 6.5 percent in FY16, added broking firm. On currency front, the rupee is expected to appreciate to 57 to the dollar. “We prefer high quality cyclicals like Maruti , ICICI bank and reform exposure stocks like ONGC and SBI. In midcaps, we prefer Eicher, Motherson, Yes bank and Aurobindo ,” said BoA-ML in its note.

How listed Gujarat firms fared under Narendra Modi's rule

 

Riken Mehta & Sagar Salvi
Moneycontrol.com

Gujarat CM Narendra Modi, popularly known as 'NaMo', has emerged as one of the country's most prolific politicians. Modi has become the favourite poster boy for India Inc because of his industry-friendly policies and no nonsense attitude while doing business.

Billionaire investor Rakesh Jhunjhunwala, in an recent interview, said that the next bull run can be triggered in 2014 if a Modi-led BJP comes into power. Be it the Reliance Jamnagar's refinery woes or Tatas Singur debacle, Gujarat has now emerged as preferred investment destination for giant corporate houses. The latest entrant to the state is Maruti. The Gujarat poll results will be out on Thursday, however, exit polls have already suggested a thumping victory for Modi.

During his first tenure (2002-2007), if an investor would have invested in 22 prominent companies based in Gujarat, his or her portfolio would have generated a whopping 2889% return.

Comparatively, during his second tenure, the returns have been muted, mostly because of the overall slowdown which started in 2007. However, investors still made a more than decent 29% return—better than benchmark index in the same period. If one would have invested in all 27 listed Gujarat-based companies since 2002, your portfolio would have made a staggering 1930 percent return.

Let's see how Gujarat based stocks have performed in his regime

Stocks	% Return in tenure1	% Return in tenure2	% Return in tenure 1-2
GHCL	854	-77	118
Mundra Port	-	-31	-
Gujarat Narmada	510	-56	168
GSFC	935	27	1209
Gujarat State Petronet	-	-16	-
Gujarat Alkali	822	-39	463
Welspun India	325	-40	154
Adani Enterprise	6006	-37	3726
Adani Power	-	-36	-
Adani Ports	-	-33	-
Sun Pharma	697	212	2388
Gujarat Apollo	954	-39	538
Gujarat Ambuja Exports	3563	-62	1286
Torrent Power	140	6	153
Torrent Pharma	286	239	1207
Torrent Cables	190	503	1651
Aarvee Denim	769	-19	606
Alembic	795	-83	53
Alembic Pharma	-	50	-
Nirma	105	10	125
Gujarat Gas	277	84	593
Gujarat NRE Coke	7236	-74	1809
Arvind Mills	252	23	333
Ganesh Housing Corp	14060	-84	2129
Atul Auto	2103	247	7552
United Phosphorous	15074	-29	10700
Ratnamani Metals	12765	-43	7278
Cadila Healthcare	427	313	2075
Dishman Pharma	196	-63	9
Average Returns	2889	29	193