Which sectors and stocks to look at? The best stock advisors in India suggest that it is the best time to invest in the stock market. There is no doubt about that. If you have been waiting for the right time, it is now. To help you get started, in this article, we help you with emerging sectors and best ai stocks for 2024.
The election results are out, and contrary to market expectations and by-poll results, the election results were not one-sided. The NDA has formed the government for the third term. In the upcoming budget, new policies will be ruled out.
Sectors to watch
Here are the top four industries to watch out for:
Number 1: Renewable Energy
India is pushing for renewable energy sources like solar and wind power to achieve energy security and combat climate change. As one of the fastest-growing economies, India’s energy demand is expected to increase significantly, necessitating the expansion of renewable energy sources to ensure sustainable and reliable energy supply. Now that the NDA government is back in power, they will continue focusing on this sector. Plus, technological advancements have significantly reduced the cost of renewable energy production, especially in solar and wind power. The levelized cost of electricity (LCOE) from renewable sources is now often lower than from traditional fossil fuels.
Companies from these sectors are:
- Adani Green Energy Ltd: They are a leader in solar power generation with a diversified portfolio and aggressive expansion plans.
- Tata Power Company Ltd: It is a well-established player with a strong presence in conventional and renewable energy sources.
Number 2: Electric Vehicles
With government incentives and rising fuel prices, the demand for electric vehicles (EVs) is surging. The companies from this sector will remain in focus in the coming years. Why? Significant investments are made to develop EV charging infrastructure, with plans to set up numerous charging stations across India. Advances in battery technology are enhancing the range, reducing the charging time, and lowering the costs of EVs, making them more appealing to consumers.
Companies to look at in this sector are:
- Tata Motors: The company is a key player in the Indian automobile industry, heavily invested in developing and launching EVs.
- Mahindra & Mahindra: Another leading automobile manufacturer with a strong focus on the EV segment.
- Exide Industries Ltd: A prominent manufacturer of batteries, a critical component for EVs, well-positioned to benefit from the EV revolution.
Number 3: Healthcare and Pharmaceuticals
India’s growing population and rising healthcare awareness are driving the demand for quality healthcare services and pharmaceuticals. The growing middle class has higher disposable income and is willing to spend more on quality healthcare services. Also, government support and initiatives will ensure this sector will do well in the coming years.
Companies from this sector to look at are:
- Sun Pharmaceutical Industries: A leading pharmaceutical company with a strong presence in domestic and international markets.
- Cipla: They are a global pharmaceutical giant known for their affordable generic drugs.
- Apollo Hospitals Enterprise: A renowned healthcare provider with a network of hospitals and a focus on medical tourism.
Number 4: Defense and Aerospace
Given the geopolitical tensions in the region, the Indian government is prioritizing defense modernization to ensure national security. Ongoing border disputes necessitate advanced defense capabilities to safeguard territorial integrity. Make in India initiative encourages domestic manufacturing of defense equipment, reducing reliance on imports and fostering indigenous industry growth.
Companies to explore from this sector are:
- Bharat Electronics Ltd: A leading manufacturer of defense electronics equipment.
- Hindustan Aeronautics Ltd: A state-owned enterprise involved in aircraft design, development, and manufacturing.
How to plan your investment for 2024?
Before you get started, here are a few things to take care of:
- Do Your Research: The details shared above only provide a starting point. It is crucial to conduct your research before investing in any stock. Consider factors like the company’s financials, future growth prospects, and management quality. At the same time, we would say that it is not everyone’s cup of tea to do all the analysis. It is normal if you can’t. Admit it. But you must invest in the market, as you may not want to miss India’s growth story. How can you do it? Check AI tools for the stock market and get started with investing, even with limited or no investing expertise.
- Diversification is Key: Don’t put all your eggs in one basket. For example, if you think that Defense will perform well, do not invest all your money in companies from this sector. Learn to spread your investments across different sectors and asset classes to mitigate risk.
- Stay Informed: The Indian market is dynamic. Keep yourself updated on economic trends, government policies, and company news to make informed investment decisions. The new government may bring new policies, understand them, and see how those impact some stocks – positively (invest in them) or negatively (stay away from them).
Please note: that none of the stocks mentioned are recommendations. The names are taken for educational purposes only.
Before you go
By understanding these emerging sectors and conducting thorough research, you can position yourself to capitalize on the potential of the Indian stock market in 2024 and beyond. Remember, investing involves inherent risks, and past performance is not necessarily indicative of future results.