The Indian markets took a severe beating last year. Valuation benchmarks were so distorted that even penny stocks began to look respectable in comparison. So how do you get the juice and avoid the dregs?
The Infrastructure Play
India needs new roads, ports, airports, railway lines and huge amounts of power. Apart from steel and cement, there are several ancillary plays as well. For instance, warehouse network will be needed along the roads and near ports. As more small towns get connected to big cities through roads, vehicle sales will benefit.
The Liberalisation Play
Government moves out, lets in private capital, it works more efficiently and delivers great returns. That’s liberalisation. The new government has the mandate to open up sectors like banking, insurance, retail and airlines to private investors. When it does, be there.
(This story appears in the 03 July, 2009 issue of Forbes India. To visit our Archives, click here.)
There were winners in this report and losers. I invested in Page Industries, Pidilite, Crisil. Thanks to the author
on Mar 10, 2016Hi I am not an investor. Hence would keep mum on most of the analysis done here and the stocks picked. Except for Kingfisher airlines. Even IF Vijay Mallya gets his hands on foreign capital - it will be costly foreign capital - there is no free lunch. Further, with airlines flying empty, I would not bet on this sector, if I were an investor. I would rather bet on his brewery business.
on Jul 9, 2009Good to see this kind of story, where every investor is considered.
on Jul 5, 2009Lol. Your market story is rather simplistic and seems almost naive. Am so used to reading a mish mash of numbers, technical analysis and high sounding theories that I laughed it off. But come to think of, this story boils down everything I need to think of in the market in very simple term and choses stock in a way an investor should actually invest. I have been investing for forty years profitably without too much reading. Your story seems to just to reaffirm my style. Appreciate it.
on Jul 3, 2009Pls dont tell me that Larsen,SBI ,etc are not dream stocks to own.Do not concur with the authors views totally
on Jul 3, 2009i think instead of going for 20 stocks,only have to mention 4 to 5 stocks with a detailed study
on Jul 2, 2009iam trading in axis bank wht abt that stock
on Jul 2, 2009Surprising Kingfisher airlines makes the cut. I would never put my money there even if it was the last stock on the bourse.
on Jul 2, 2009how one can look at these high pe stocks lot of stocks are available for attractive valuations .
on Jul 2, 2009Why does all the stocks recommended are near it's 52 week high ?? We need to identify these gems when the price is low ...
on Jul 2, 2009dont belive in hindalco anymore
on Jul 1, 2009I do not agree .Investing in FMCG Is not good idea .RatNher look for IDFC, ICICI,videocon
on Jul 1, 2009your comment on Kingfisher and belief that Vijay Mallya will take it to greatness smacks of Delhi Times than Forbes!!
on Jul 1, 2009You have ignored number of infrastructure/cement shares
on Jul 1, 2009pidilite inds.only looking attractive i have no faith in fmcg like dabur and marico
on Jul 1, 2009Logical start,to get greedy
on Jul 1, 2009THIS IS NOT CORECT. LICHSGFIN, BARTRONICS, WELGUJ. FUTURE IS URS. THIS IS THE TRAIL.
on Jul 1, 2009This write up makes lots of sence.
on Jul 1, 2009All the stocks discussed here are good except Suzlon. I am skeptical about their quality of earnings. Doubt reliability of their financials.
on Jul 1, 2009Good compilation..
on Jul 1, 2009sector wise study needed
on Jul 1, 2009No
on Jul 1, 2009