Economies around the world have been hit hard by the novel Coronavirus, and India was no exception. Most businesses have felt the effects of the lockdown and are struggling to stay afloat. However, some businesses used the opportunity to grow their online presence by improving their digital platforms such as the well-established Lucky Nugget online casino which proved to be a major attraction during this social distancing era.
If you are interested in investing in India, some sectors would be ideal at the moment. Here, you will learn about the top industry sectors you can invest in India.
Banking
You must be thinking this is an insane idea. Not really. Studies on the Indian economy have revealed that the Banking sector in India has defied the odds and remained bullish in 2020. As an investor, you should consider investing in private banks as opposed to public banks.Although it is estimated that most of the credit offtake is from public banks (around 70%), private banks have a unique chance to improve their credit offtake. Furthermore, experts predict that investors can get good long-term returns from the banking sector in the coming months.
Consumer Electronics
The Indian consumer electronics market is projected to grow to almost double its current price by 2025. The market includes electronic machines like televisions, refrigerators, and air conditions. These types of appliances are still underused in the rural areas in India.The pandemic weakened the BSE Consumer Durables index, but experts project that it will begin to rise towards the end of 2020. Therefore it would be wise to channel your investments towards this industry.
Information Technology
The Information Technology (IT) industry in India is currently undergoing a transition period. The global pandemic inspired lockdowns saw many companies restructure their operations. Some had to lay off staff while others let them work from home. The industry is expected to revamp its operations in its post-Covid strategy.The industry has never disappointed its investors in the last ten years as its BSE index has grown thrice. The government will also play a role in the development of the sector as it invests in the Digital India Project. The sector remains a potential investment avenue for investors, but you ought to be careful before purchasing major stocks that are priced lowly.
Infrastructure
The Indian government has continued to pump a significant amount of its annual budget into infrastructural development projects. The government has focused on freight corridors, expressways, and railway lines. With huge investments from the national government, investors should look forward to getting good returns from companies handling infrastructure projects.There is also a lot to be done in the future as India still lags behind in infrastructure. Investors can expect more investments in the next four years of the current government. You are also safe investing in companies that benefit directly and indirectly from infrastructure projects. A perfect example is the cement industry.
Automobile
In the recent past, the automobile sector in India has been on a downward trend. The decline started even before covid-19 struck. However, the future is bright, based on the government’s continued investments in infrastructure. Plus, there is a recurring trend where the industry experiences highs and lows every five years. The emergence of electric cars on the Indian market will also boost the vehicle production industry in the near future.The Bottom Line
As a smart investor, you must have a good understanding of how different markets operate. The Coronavirus destabilized many industries in the last seven months. However, some businesses have come up with innovative ways to survive.At some point, you should expect some form of normalcy to return. When that time comes, projections from experts suggest that the industries mentioned above will be doing better. Take your time to further study the trends and decide on a sector or two where you will put your money.
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