Which sector would you bet on in 2007?
Infrastructure, power equipment and mid-cap information technology stocks could deliver strong returns in 2007. While these stocks have risen significantly during the last year, the outlook for these sectors remains positive.
By TNN |
Infrastructure, power equipment and mid-cap information technology stocks could deliver strong returns in 2007. While these stocks have risen significantly during the last year, the outlook for these sectors remains positive.
The infrastructure sector, in particular, should do well because of the ongoing boom in construction activity in the country. But one should stick to frontline stocks in the infrastructure sector.
Sachin Neema,
head-research, IndiaInfoline
We are bullish on information technology, media and telecom sectors. The increasing penetration of direct-to-home service should bring about a structural shift in the media sector. Telecom shares have appreciated sharply over the last year. But given the strong growth in subscriber base, these stocks should continue to deliver good returns.
Harendra Kumar,
ADVERTISEMENT
Head-research, ICICIDirectWe expect power sector companies to outperform the indices mainly due to the strong investment expected in the power generation, transmission and distribution space. Currently, per capita electricity consumption in the country is 512 units pa as against world average of approx 1050 units pa.
In order to meet the growing demand for power, it is expected that in next 25 years power generation capacity will have to increase by six-fold to sustain industrial growth. India has targeted to add 66,463 MW of new power capacity during the XI Plan period (2007-12), out of which work relating to 23,000MW is yet to be awarded.
Even if we presume 60% allocation then also we can expect 16000MW to be added, which would require an investment of Rs 64,000 crore.
ADVERTISEMENT
Kalpesh Parekh,Head of Institutional Sales,
ASK Raymond James & Associates
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
