BREAK UP OF GENERAL ELECTIONS 2009 Finally the day that counts is
here. What happens today is likely to shape the future of the nation.
The UPA or the United Progressive Alliance - formed with a majority of
Congress party, sprang a surprise when they snatched victory from the
defeat predicted by the poll pundits.

The Indian electorates have
matured and they have given a result that is more or less based on
performance than anything else. India's ruling party Congress (INC) has
won around 250 seats out of the 543 parliamentary seats up for grab in 2009 India
Elections, beating out the main opposition bloc led by the Bhartiya
Janata Party (BJP). While, short of majority the result means incumbent
Prime Minister, Dr. Manmohan Singh, will form the 18th Indian
government.

UPA government without support of Left & Maya This will cheer the
market. UPA may have hurdles like Mamta, Mulayam etc but in last 5 year
congress managed coalition very well and expectation of stable
government is already very high with increased share of congress in
pie. Various legislation relating to insurance, pension, labor, banking
etc which congress was willing to pass but was not able to clear
because of hurdle from alliances are likely to get cleared. The
expectation of managing the huge fiscal deficit by new government under
the leadership of Dr. Manmohan Sing will improve. World will see more
stability in India and fund will flow towards India. We have seen the
appetite of foreign investor in recently concluded DLF block deal. Lot
of money is waiting to enter Indian market and we may see near term
strong rally not only for Monday but even thereafter. The sectors which
will be immediately gets benefit because of stable UPA government
without Left support are:

Major Beneficiary

Construction

Power (Construction & Eng)

Power (Generation)

Infrastructure development

Banking

Fertilizer

Education

Government company with Disinvestment Possibilities

Less Beneficiary

Steel

Auto

Tourism

Textile

Cement

Real Estate

Neutral

FMCG

Pharma

Telecom

IT

Non Ferrous

Metals

Entertainment

Our top picks are: Reliance Industries, Reliance Infra, ICICI Bank,
Axis Bank, Bank of Baroda Canara Bank, IDFC, Patel Engineering, Shiv?
Vani Oil, Lanco Infra, Sterlite Technology, & Sintex Industries.

Technical Analysis by Sunil Jain and Ruchita Maheshwari, Senior Research Analysts at Nirmal Bang Securities.