Modi Sarkar@2: Key reforms that will trigger growth

By Sanam Mirchandani

The two years of the Modi government have seen the passage of some key policy measures which are expected to benefit related sectors over the long term, according to analysts. Here is what analysts say about the reforms:


REFORM: The real estate bill aims to bring transparency in the sector through the Real Estate Regulatory Authority and protect home buyers’ interest.

STOCKS TO BENEFIT: Oberoi Realty, Mahindra Lifespace

ANALYST VIEW: “From the real estate developers’ perspective, the real estate bill may elongate the working capital cycle which should lead to consolidation in the sector and benefi t the quality players such as Oberoi Realty and Mahindra Lifespace,” said Pankaj Pandey, head of research, ICICI direct.

REFORM: UDAY aims to revive state electricity boards and operational effi ciencies of power distribution companies.

STOCKS TO BENEFIT: NTPC, KEC International & Kalpataru Power

ANALYST VIEW: “UDAY is positive for the sector, but more benefi cial for generation companies because utilisation and demand has been low,” said Sachin Mehta, research analyst - power and oil & gas at Centrum Broking.

REFORM: The deregulation of diesel prices, announced in 2014, aims to ease subsidy burden.

STOCKS TO BENEFIT: IOC, BPCL and HPCL

ANALYST VIEW: “The diesel deregulation and direct benefi t transfer (DBT) of LPG subsidy are among the key measures, which should benefi t oil marketing companies. It should also help upstream oil companies due to the reduced subsidy burden,” said Harshad Borawake, VP-Institutional Research, Motilal Oswal.

REFORM: Bankruptcy Code will lead to better resolution of insolvencies and faster recovery of loans.

STOCKS TO BENEFIT: SBI, PNB and ICICI Bank

ANALYST VIEW: “Banks which have high exposure on the corporate side should benefi t in the long term, particularly PSU banks,” said Siddharth Purohit, senior research analyst at Angel Broking.