Things are changing fast in the Indian economy and institutional investors like us are looking for the stability. Like, inflation had dropped last month but it is hard to keep them at those levels all the time. The IMF in the G20 meeting had requested RBI to increase the interest rates (click here) at one end while many economist in the country are expecting that RBI will start cutting interest rates as early as start of the next year.

When the new government came into the power, they emphasized and showed commitments to invest in the infrastructure projects and we had seen the infrastructure sector zooming up in the hope of better numbers by those companies in the next year or two.

The auto sector, infrastructure, housing, cement, manufacturing, retail and banking are in hope of interest rates to go down and that their businesses can revive and start reinvesting. A new initiative of “Made in India” by the government is to revive the manufacturing sector of the nation which is struggling from last couple of years.

The new government is doing its best to revive the economy, but it will take a while to see the results of its efforts. This is the time to select those businesses who are ready in all ways to take the opportunity thrown on them or in the market.

Here is what we think that your portfolio should have exposure to the following sector:

  1. Automobiles
  2. Automobiles Ancillary
  3. Banks
  4. Software Developers
  5. Electrical equipment’s
  6. Engineering
  7. Finance Housing
  8. Food & Food Processing
  9. Gas
  10. Mining
  11. Oil Explorations
  12. Telecommunication services

We will be looking to build a portfolio of 8 -12 businesses in the next 3 months looking forward to invest with time frame of at least 3 years.

We are very optimist of the banking sector from the above sector and would prefer to have at least 20% of your allocation on it. Our own portfolio today has around 15% exposure and we are looking to invest a bit more within them.

What we miss are the beautiful online businesses that are not listed on the stock market. We are expecting many e-commerce businesses to get listed on the stock market in the next 3 years.

Hope you will be able to get a lot valuable information and will get help to build your portfolio.

Your views are most welcomed…