Equity: Sparklers for your portfolio

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: NTPC will always grab attention. BHEL, the engineering and electrical giant with an order book of about 3 times of its annual turnover, is expected to keep on to its pioneering ways. Others in the construction and related engineering companies like L&T, HCC and IVRCL, will see rising opportunities. The industry is already experiencing cement shortages and cement players like ACC, GACL, Grasim and UltraTech will definitely benefit. On the oil and gas front, companies like ONGC and Reliance will be keenly watched by investors.

Economy plays

India has the second fastest growing economy in the world. Therefore, it offers a lot of investment opportunities for companies to ride on the wave of this growth.

The banking sector is a key beneficiary of this growth, backed by stabilising interest rates and consolidation being on the cards. Key players here would include HDFC, HDFC Bank, SBI and ICICI Bank. Logistics solutions are going to benefit due to higher volumes in the economy. Growing demand for value-added products and consolidation in terms of number of players is expected to pay off. Container Corporation, and GATI, among others, are expected to be the key players here.

Globalisation opportunities

Adi Godrej, chairman, Godrej Group, expects foreign outflows from India to outpace FDI in the next five years. This speaks volumes about steps Indian companies are taking to reach out to the world. Either by acquiring overseas companies, or by simply entering new territories, many Indian companies have dared to dream.

Prime among them is the Tata Group with Indian Hotels, Tata Motors, Tata Steel and Tata Tea making forays abroad in myriad ways. Pune-based Bharat Forge has ambitions to be the largest forging company in the world. Pharmaceutical companies like Dr Reddy's Labs and Ranbaxy have steadily been building their international portfolios.

Tech services

A surge in business volumes and a growing clientele has aided IT companies in posting good numbers almost every quarter. Technology companies have matured from the headhunting paradigm and now offer tremendous value to its clients. Revenue growth for these companies is sustainable and will provide investors with opportunities.