Education sector which is in bad shape currently has huge potential for an overhaul.
There is a broad consensus that the global center of economic growth is moving to Asia, and as a large emerging nation with a growing middle class, India has captured the attention of the developed economies looking for new investment and trade opportunities. The sectors leading this race with the highest rates of growth could be looked upon as our emerging sectors.
Below we will list some of these sectors:
1) Real Estate
India’s real estate is back on the radar of global investors and institutions with the country emerging as the other significant investment option in the wake of China slowing down. Reforms taken by the Modi government are finally taking effect and the last two years have seen significant improvements in overall corporate governance. REITS and accumulated investing platforms seem to be in vogue this season, with most investors choosing to have professionals manage their investments into this sector right now. We are most bullish on DLF and Indiabull Real Estate at this juncture.
Healthcare sector in India has been growing at double digit rates over the last decade, with very little penetration in healthcare and the nascent stage of health insurance industry in India, the opportunities to arise from this sector could be multifold. Sun Pharma and Cipla are our top picks in this sector.
Education sector which is in bad shape currently has huge potential for an overhaul. A recent report tabled in Parliament that over 1,00,000 schools in India have just one teacher is an alarming wake-up call for the government and all stakeholders. However, it also offers a genuine opportunity to transform India’s archaic education landscape now that a new policy is under discussion. Everonn is our top pick in this sector.
This is our evergreen pick with consumption at the national level always increasing as more people come into the middle class, also recent reforms which put a lot more money into the hands of Government employees could add a significant boost to this sector. Our top picks here are Hindustan Unilever and ITC.
5) Financial Technology
At present, we are seeing a huge boom in this sector worldwide with accelerated fund flows moving into this sector, with access to banking and fintech at extremely low levels in India, it can only be innovation and technology which could bring access to banking to such a large populous of our country which still does not have basic access to banking. Most of this sector is yet to hit the stock markets, but this is the space we would like to watch as innovation here currently is occurring at the most aggravated pace.
(The author is co-founder and director at Zerodha)