Investment Themes for Year 2011

In year 2010, equity markets hit at all time highs and many people were left out of this rally in equity markets, in this current bull run of the stock market many sectors or industries gave great returns, while some sectors lagged in terms of return in this bull market. So if one is planning to invest in year 2011 what sector or industry one should select in order to good return, given below are some of the investment themes for year 2011 –

  1. Power sector – Power sector has not performed that well in current Bull Run so that might be a sector for look at as investment option, power sector include companies like NTPC, NHPC, Tata power etc…
  2. Infrastructure – As India is a developing country, the government will make huge investments in infrastructure projects in next few years, and therefore one can invest in those infrastructure companies which have good order book and relatively low PE ratio as compare to peer companies.
  3. Telecom sector – Telecom sector companies have also been laggard in this market and with the introduction of 3G, who knows this sector might be a dark horse in the year 2011. Companies like airtel, reliance communication, idea etc…. can be looked as investment option.
  4. Oil and Gas – With crude prices again inching upwards one can also look into companies which do well when crude price moves up. These companies include upstream companies like reliance, ONGC etc…. and also offshore companies and shipping companies.

Apart from above sectors or industries one can also look at individual companies which are in niche business and are expected to perform well like companies which are into gaming and new technology related companies. However one should keep in mind that stock market are bound to be volatile and therefore one should not invest his or her entire capital at one go in those sectors or companies which one likes, rather one should invest in small amounts at regular intervals so that one does not get stuck into any particular company or sector at higher prices, since investing systematically will give the advantage of averaging to the investor.

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