Experts pick 20 stocks which may benefit from PM Modi's push for optical fibre, infra, cyber security

Prime Minister Narendra Modi-lead government's big initiatives, since 2014, including Make in India, Digital India, Vocal to Local and Make for World are going to be a gamechanger for the country in coming years, experts said adding that the initiatives will attract more global companies setting the country on the path of becoming an economic superpower.

"Government's push (Atmanirbhar Bharat) is an excellent long-term opportunity and we believe this can make a big difference in building the 'New India' and put it among other global economics post-COVID," Prashanth Tapse, AVP Research at Mehta Equities told Moneycontrol.

The government already announced several measures including a cut in corporate tax, tax incentives for setting up manufacturing hubs for local as well as global players. In addition, Prime Minister Narendra Modi, in his 74th Independence Day speech, announced additional projects: connect six lakh villages via optical fibre in next 1,000 days, Cyber Security Policy, over Rs 110 lakh crore for National Infra Pipeline-Jal Jeevan Mission etc.

These projects are going to boost the economy, create job opportunities as well as investment opportunities, experts feel.

According to them, 20 stocks benefit from these initiatives (announced on Independence Day) including L&T, Sterlite Technologies, Jindal Saw, KNR Construction, HDFC Bank, Ratnamani Metals and JK Cement. They advised investing in these stocks with medium to long-term view.

Here is the list of stocks which would get benefitted:

Prashanth Tapse, AVP Research at Mehta Equities

We believe continued allocation for Jal Jeevan Mission would be positive for ERW and SAW pipe manufacturers. Stocks such as Surya Roshni, APL Apollo Tubes, Jindal Saw may benefit.

Optical Fibre network push can benefit stocks like Sterlite Technologies, Aksh Optifibre and HFCL.

Given the government's initiatives for the infrastructure sector, we are bullish on stocks such as Larsen & Toubro, Ashoka Buildcon, Dilip Buildcon, KEC International and KNR Constructions.

Vineeta Sharma, Head of Research, Narnolia Financial Advisors

The government announced a series of plans particularly related to COVID related issues along with a series of announcements on infrastructure-related plans which should benefit EPC businesses, cement, pipe manufacturing companies.

Plans to push optical fibre network will help consumer-related businesses flourish.

The early advantage of enhanced cybersecurity should come to the banking sector as once cybersecurity is established, the mobile itself becomes a bank branch and transactions can be facilitated more easily. We recommend investors to hold or buy on declines companies like HDFC Bank, Bandhan Bank, Escorts, Ratnamani Metals, L&T and JK Cement.

Gaurav Garg, Head of Research at CapitalVia Global Research

Stocks like Sterlite Technologies, Finolex Cables, Polycab India, ITI and KEI Industries are likely to benefit from the above-mentioned initiatives. Investors should invest in these stocks in a staggered manner in order to optimise returns.

Sterlite Technologies might turn out to be a good investment opportunity as it eyes to cover the nation with the help of National Optical Fibre Network (NOFN) and aims to connect all the 2,50,000 Gram panchayats in the country and provide 100 Mbps connectivity to all gram panchayats for mid to long-term.