PSU stocks: On divestment hopes

With the UPA set to form the Government without the support of the Left but with a number of smaller parties, the PSU firms are expected to tap the stock market route in an aggressive way for raising resources as the smaller parties have no ideological objection to the arrangement.

Counters such as BEML, Bharat Electronics, BHEL, Container Corporation, Dredging Corporation, Engineers India and Neyveli Lignite Corporation could see immense activity in the days ahead.

Banks: Betting on reforms

Expectations are high that financial sector reforms may see a big push.

Relaxation of FDI cap in insurance, a free hand for banks in branch and ATM expansion and consolidation of the sector by merging underperforming small banks and stake dilution in some public sector banks are some of key reforms that might happen soon.

Watch out for stocks such as Central Bank of India, Canara Bank, Indian Bank and Bank of Maharashtra besides banking behemoth SBI.

Retailing: FDI expectations

With Left out of the governance equation, retailing stocks such as Pantaloon Retail, Koutons Retail, Vishal Retail, Indiabulls Retail, Shoppers' Stop, Trent, AB Nuvo, Provogue, Raymonds and Bombay Dyeing might see investors' interest on expectation of allowing foreign direct investment. The sector witnessed significant transformation in the past decade – from small unorganised family-owned retail formats to organised retailing. With the growth in organised retailing, unorganised retailers are fast changing their business models retailing is one of the few sectors where big activity could take place.

Agri-related stocks

With Government set to focus on rural economy, agri and agri-related stocks such as Tata Chemicals, Coromandel Fertilisers, Zuari Industries, Deepak Fertilisers, RCF, Jain Irrigation, Rallis India and Chambal Fertilisers and other fertiliser stocks could be on the investors' radar.

Nuclear Deal

Stocks such as L&T, Areva T&D, Gammon India, HCC and Tata Power would benefit as the Government would go speed on nuclear deal.