Themes for future - Views invited

Hello guys,

First of all, I must appreciate the good work all you guys are putting in educate and benefit broader set of people. Though I am quite late here, it is very informative and useful.

During every bull run there is a broader theme which carry forward its run. Until early 2000’s it was IT, before the great recession, it was Realty, and very recently it used to be pharma.

Now that the new government has finished it’s 1 year in office and there are lot of measures being taken, which I believe will bear fruit in another decade, I request you guy’s to provide your views on the themes which will take this bull run further.

Disc: Invested in stock market.

I think Pharma will continue to sparkle. IT and Banks will continue to provide good support.

Government is likely to come out with good measures to boost textile…Textile stocks will most likely see lot of traction over the next few years…

I think the three drastic shifts which are very much evident are:

  1. Urbanization
  2. High internet penetration
  3. Changing demographic tilt towards youth

I believe these themes are still in the early stages given that c. 60% of India still live in villages and many in tier-3 towns while internet penetration is still minimal compared to developed countries. Hence, the shelf life of these could be around next 8-10 years.

We should try to identify sectors which have positive or negative effect due to these broad themes to make most of the market.

For example:

  • Themes like Kajaria, Repco, Gilette etc have played out in the past due to urbanization and demographics
  • Themes like online shopping is yet playing out (though not much in listed space but we should watch out for disruptions)
    e.g. companies like AB Nuvo is increasing digital sales revenues by 100% p.a. (although still very small pie of overall revenue)