Friday, 24 May 2019

5 Best Sectors and Stocks for Investing in 2019 and after BJP Massive Victory

Posted by MyInvestmentsPub
(Published on 24-May-2019)
Results announced. BJP led NDA Government coming back to power with massive victory. During first period of Modi's Government, the benchmark indices Sensex and Nifty rallied over 50%. It means, Markets will continue this momentum in the coming 5 years. However, analysts warning that the Markets have already factored the victory of BJP led NDA's victory in the last 2 days. Hence a prudent approach is required to invest in the Markets. Analysts saying investors with moderate-to-high risk appetite should continue to invest in the Market. A systematic approach is also a good approach to invest in the Market. We will see what are the Top sectors and stocks that are going to benefit from BJP's landslide victory consecutively.

5 Best Sectors and Stocks for Investing in 2019 Upon BJP Massive Victory:

A stable and able Government is going to form at Central. Expecting this Government would continue the reforms and policies that have announced in the first-term. It will likely to focus on the capacity creation through Infrastructure Development by using current technology trends. The following 5 Sectors are favorable for investing in the coming years.

1. Infrastructure Sector:


The new Government would definitely continue the focus on the Infrastructure areas such as Manufacturing, Cement, Housing and Banking. A new Industrial policy is likely to announce by the new Government which will improve the competitiveness of manufacturing and services.

Favorite Stocks to Invest: L&T, Adani Enterprise, RIL and NCC

2. Automobile Sector:

Automobile sector will also benefit from BJP-led NDA's Victory. Especially the 'Make in India' will give positive expectations on this sector. If good rainfall continues, the Automobile sector would double benefit.

Favorite Stocks to Invest:: M&M, Maruti Suzuki and Hero Motocorp

3. Housing Sector: 

One of the main focus area of the previous NDA Government is Housing Sector. Schemes like 'House for All', '100 Smart cities', Tax benefits to Middle-class are some of the favorable points to Housing Sector to emerge in the second term of NDA Government.

Favorite Stocks to Invest: HDFC, HDFC Bank, LIC Housing Fin, UltraTech Cement, SBI

4. Technology Sector:

Technology stock legends have almost doubled in NDA's first-term. For eg., TCS rose from 1076 to 2096, Infosys from 386 to 723 and HCL from 695 to 1061. The stable Government will definitely favorable to Technology sector. Moreover, the relationship between India and US has been getting stronger in Modi's regime. Expecting, this trend will continue in the next 5 years.


Favorite Stocks to Invest:: TCS, Infosys, and HCL

5. FMCG Sector:

The continuance of Stable Government will results the smooth flow of current reforms and policies in the country. Not only the Government support, but also the changing lifestyles, growing Middle-class people and the easy access to buy (thanks to Technology), the FMCG seems attractive to buy. However, most of the stocks under this sector are expensive and need to select stocks carefully.

Favorite Stocks to Invest: ITC, Jyothi Labs and Jub. Food

Points to Observe:


  • US-China Trade war worries may turn negative our Markets in the short-term
  • Rain Fall: Though IMD suggesting near to Normal rainfall this year, the weak rainfall may affect the Markets negatively.
  • If the current reforms and policies are not continued, then the preferences may change
  • High Nifty PE is also a concern for investing

Conclusion:

Follow systematic approach to invest the above stocks for long-term perspective. This approach will insulate from the Market turbulences. Finally, one important point that, all the above stock-picks are based on my analysis only and do your own analysis before investing into these stocks.

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