Get up to speed on stocks this downturn that might prove to be winners
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.)