Rahul Arora, CEO, of Nirmal Bang Equities  believes that “If this government was to be reelected, again, it will be squarely focused on the economy. And I wouldn’t be surprised if the index compounds at about 15-16% over the next five years, which basically means a doubling of the Nifty over the next five years.”

In a conversation with CNBC-TV18, Arora also noted that the liquidity in the system currently (₹1-1.5 lakh crore adding all institutions) does not allow for major market corrections although there may be intermittent pauses.

Arora also believes if the Nifty were to retrace back to its highs, it can’t do it so without support from banks.

“Top private sector banks of the country, HDFC Bank, ICICI Bank, IndusInd Bank, Axis Bank and Kotak Mahindra Bank will give probably 15-20% kind of growth,” he said.

He finds State Bank of India (SBI) worth buying even at the current price.

He is also bullish on non-banking financial companies (NBFCs) including gold financiers like Muthoot Finance.

Arora thinks the first quarter of the next year will be interesting for the media sector with the Indian Premier League (IPL) underway, the T20 Cricket World Cup scheduled this year, and the largest democracy in the world going to election.

He also sees some value emerging in defence stocks like Mazagon Dock Shipbuilders and in chemical stocks like Galaxy Surfactants, Fine Organics and Rossari Biotech. Cement could also be an interesting sector, he said.

However, he is cautious on the technology space.