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The Game Changer


The investors are always lured to the new pastures which always catch the investor’s attention, and it later on proves to be an investor’s paradise. Now there are few aspects that it’s quite possible that the investors by default invest in dying or matured stocks thereby burning their fingers but in the case of a successful investing will always require anticipating the changes and keenly watch the implications. One must make a strong note that the market is ever evolving and so it’s imperative that one must also evolve with the time and do thematic investment with the clear focus on the broader macroeconomic themes identifying strong companies as well as the trends and sustain over the medium term.

It’s an irony that the risks and returns are the two faces of the same coin, higher the risk and higher the return  but the need of any hour is that the investor must be able to identify the mega futuristic trends when they are about to take the baby steps. For example those who invested in IT and pharmaceuticals in 2008 must be definitely harvesting rich.

Now we suggest The Awesome Eight:-

1)   The internet and the Data duo:-If we compare amongst any other growing economies the number of internet users is just 10% against its peer where the internet users are 34% so also the emergence of smart phone are on the rise so also is the rise of 3G to 4G services and also the government is initiating and actively promoting the broad band and so the boom in data is expected. It’s not a surprise that the internet will potentially contribute to the India’s GDP by 8% from the present 4% that is just the double so this only goes on to strongly indicate that that those companies which are dealing in businesses related to internet or data in social media, mobiles and computers, service providers-commerce and networking are headed for huge earnings growth.

2)   The Tourists destination:-The tourism is now a hot potato as it is on the government’s top of the list as it brings in substantial foreign exchange. The government plans to kick start 50 tourist circuits. The tourists inflows has grown from 11% to 17% over the years and has got the potential to grow  5 to 10 times in the next five year or so if compared to Thailand,Malaysia,China and Turkey. India has got a plus point that it is rich in history as well as geography. As soon as the tourism picks up the rerating of both the hotels, transporters and travel operators will be rerated.

3)   The Financing Companies:-The Financial Sector never goes out of flavor. The valid point is that no economy can flourish without having access to the capital. So if we see that the investor is busy in India than his portfolio must definitely be having handful on financial sector stocks because the interest rates cycle I at its peak and is expected to reverse around the next corner. So watch out for the consumer financing, auto financing, housing loan financing, SME Financing, Micro and Rural would be the best bets.

4)   The concept of make in India:-This is the new flavor on the blocks. Since the past two decades China has dominated the international scene in exports is now losing the grip and is going downhill owing to the losing its grip on low cost capital, cheap labor and now the undervalued currency.

5)   The concept of made in India:-Now it’s better late than never, India is becoming more and more competitive in low cost capital, cheap labor and growing currency. India is fast becoming the world’s best destination for make in India and made in India. SO in the coming times we will witness a surge in presence of manufacturers dealing in various sectors such as chemicals, textiles, engineering and auto-ancillaries.

6)   The paradigm shift from unbranded to the branded:-There is a sudden change in taste in the new generation of Indian consumers which has shifted from unbranded to the branded. Right from the jewelry, Titan, dress materials, sanitary ware etc.

7)   Gold:-With the mega job opportunities cropping up there will be a definite rise in the living standards so gold will be the one of the most sought after metal. So your portfolio without gold would be incomplete.

8)   The Banking as well as NBFS:-The banking as well as the non banking financial sector are destined to boom in the next five years.