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Narendra Modi's prospects brighten with new allies: report
The BJP has beaten the ruling Congress party in the race for stitching alliances ahead of the general elections, Bank of America Merrill Lynch (BofAML) says in a report published on Wednesday. These alliances have also belied some apprehensions that BJP prime ministerial candidate Narendra Modi would not be able to attract new allies for the NDA, Jyotivardhan Jaipuria and Anand Kumar of BofAML say.
The BJP has joined hands with Ram Vilas Paswan's Lok Janshakti Party in Bihar (40 seats), while in Haryana (10 seats), the party has formed an alliance with Kuldeep Bishnoi's Haryana Janhit Congress. However, it's the six-party grand alliance that BJP has stitched in Tamil Nadu (39 seats), that could surprise positively, the report notes.
According to Bank of America research, this alliance of six parties (BJP plus DMDK, PMK, MDMK, IJK, and KMDK) had a vote share of nearly 23 per cent in Tamil Nadu as compared to Jayalalithaa's AIADMK at 23 per cent and M Karunanidhi's DMK at 25 per cent.
"Most opinion polls have so far given very few seats or no seats to the BJP in Tamil Nadu, so this big alliance could likely surprise in favor of BJP-led NDA," the analysts added.
According to the report, BJP-led NDA has now a foothold in almost all major states except Kerala, Odisha, and West Bengal where the BJP continues to remain weak. This gives the BJP alliance a fighting chance in nearly 425 seats out of the 543 seats, the report notes.
In Andhra Pradesh (42 seats), the BJP is reportedly talking to former chief minister Chandrababu Naidu's TDP for an alliance.
The Congress, in contrast, but been unable to form any alliance in the states of West Bengal, Tamil Nadu and Andhra Pradesh where they traditionally had alliances, the report notes.
Bank of America's investment strategy: A strong government will lead to a bigger tilt toward domestic plays, while a weak coalition will lead us to tilt toward software and pharma names, the investment bank says. ICICI Bank, Lupin, Maruti, TCS and ONGC are among its top buys.
Narendra Modis prospects brighten with new allies: report - NDTVProfit.com