Budget 2015-2016 brought a big change in the investment pattern of people. Finance minister Arun Jaitley announced in his budget that India will become Asia’s third-largest economy with a growth rate of 7 to 8 per cent over the next two years and the mode of investments among people should change. The budget proposes that five sectors are likely to grow at a faster pace in the coming years. The investors should keep a track for investments in stocks in these sectors to benefit from. The top 5 sectors to invest in 2015 are-
The banking sector is emerging due to the bold reforms initiated by the government and recapitalization policies of Public Sectors Unit (PSU) banks which liberalized the monetary policy. They brought back interest on their stocks with lower interest rate cycle by which the PSU banks have become a structural investment form for investors.
As the economy really started to gain its momentum the investments in infrastructure is going to be highly benefited especially in cements and power space. The investors expect a Standard Operating Procedures (SOP) from infrastructure and power space which make more investments in these sectors.
- Non Banking Financial Companies (NBFCs)
The Modi government has planned to develop 100 smart cities across India and has allocated of 7,060 crore for this in the last Union Budget. A smart city uses digital technologies to enhance quality in performance of urban services with reduced costs and effective resource consumption so as to engage more effectively with people. If the plan of government to start 100 smart cities comes into action the investments made in low cost housing programmes and housing finance companies are going to be highly benefited from this.
In its new budget the government has decided to allow 100 percent FDI in railway sector, in its operations and projects. As the government has decided to increase their spending on railways the investment in stocks in companies which act as the suppliers to railways such tracks, signals, and carriages will benefit the investors.
The defence sector is developing in India as the government has raised the FDI cap to 49 percent. By this the government is planning to built their own defence materials .So the investors are recommended to invest more in those companies that act as suppliers of materials to defence to have more benefits.