The Bharatiya Janata Party, which runs the India's central government, won the power in Bihar with a big margin; this will be a good sentimental booster for consumption stocks, Jefferies said.
The incumbent state government used the cash transfer schemes effectively in the past two-to-three years, which worked as a great political swing factor. Now, over the next 12–15 months, some largest states, including West Bengal, Tamil Nadu, Keral, and Assam, will go into poll. Jefferies is guessing that the governments will use the cash transfers schemes, especially for women, to earn the popularity, which will prove positive for consumption.
Bharti Airtel Ltd., Vishal Megamart Ltd., TVS Motor Co, Crompton Greaves Consumer Electricals Ltd., Godrej Consumer Products Ltd., Marico Ltd., and Jubilant FoodWorks Ltd. are top picks of Jefferies in the consumptions sector.
The Bihar Assembly Election 2025 confirmed the efficacy of direct-cash transfer schemes, especially one that focuses on women's farewell. Hence, political parties continued to rely on welfare-driven strategies to fetch support in elections.
The National Democratic Party Alliance and Mahagathbandhan emphasised the direct-benefit schemes in their campaigns, Jefferies said.
The NDA state government in Bihar announced a program to support women entrepreneurs with Rs 2 lakh, and already disbursed Rs 10,000 each to 75 lakh women under existing schemes. Additional promises of free electricity, expanded scope of financial assistance scheme for unemployed youth, Jefferies said.
Similarly, MGB promised schemes of direct cash transfers and free electricity in their manifestos. The alliance also promised to review the current ban on liquor and increase the reservation limit of backward classes from the current 50%.
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