BHEL, Bharti in BNP Paribas' 14 investible stocks

The near term (with respect to India) is clouded by potential job losses, decline in infrastructure spending and corporate capex, rising fiscal deficit and uncertainty over the general elections, according to a recent BNP Paribas India investment report. The brokerage has picked 14 companies which can benefit from rising consumption (especially durables) and rising investment (due to rising savings rate). According to the brokerage, three important socio-economic variables - improving demographics (declining dependency ratio), rising affluence and increasing urbanisation and nuclearisation of families - are changing in India, and these (variables) could have far-reaching effects on economic growth, savings rates, consumption patterns and product and services penetration. BHEL (down 2.3% at Rs 1332.4), Bharti Airtel (up 0.2% at Rs 602.8), Cairn India (up 3% at Rs 159), Grasim (up 2.2% at Rs 1392.10), HDFC (up 0.8% at Rs 838.20), Hero Honda (up 2.2% at Rs 920), ICICI Bank (down 1.9% at Rs 290.60), Indiabulls (up 3.7% at Rs 90.65), Maruti Suzuki (up 0.8% at Rs 677), NTPC (down 0.4% at Rs 178.10), Reliance Industries (up 0.4% at Rs 1204.70), SBI (down 1% at Rs 965.50), Sun Pharma (down 0.9% at Rs 962) and Tata Steel (up 3.2% at Rs 160.70) are the 14 investible stocks, according to BNP Paribas. (CMP at 1.04 PM) Our investment themes focus on the potential rise in consumption (durables, healthcare, education), in infrastructure spending, and the need for more energy, urban infrastructure and housing and more fiscal intermediation, the BNP Paribas India Investment report said.