By V L A Ambala


The G-20 Delhi Declaration under India’s presidency has been a major event for the participating nations and Indian traders who have closely been monitoring the stock market movement during the summit. Notably, this G-20 summit brought together over 85 per cent of global GDP and 75 per cent of international trade at one platform, making the event a crucial platform for India to showcase its potential at a global level. The event’s success has significantly boosted India’s stature, which has prompted positive stock market movement.


Experts believe India’s diplomatic triumph could continue the positive market outlook and momentum. Moreover, the African Union’s inclusion in G-20 along with the proposed India-Middle East-Europe Corridor, are expected to have positive market connotations and benefit the overall economy. This could promote more inclusive trading and boost major business sectors, creating new opportunities with fewer restrictions. Also, it will open more avenues for Indian stock traders to explore new and lucrative options.


On that note, let’s gauge the potential sectors and top stocks that are bound to benefit from the success of the G-20 summit and upcoming prospects and find out how to capitalise on them.


Key Sectors and Top Stocks to Watch Out


India is in the limelight for Man, Mind, Management, and Might. We are one of the countries with the world’s youngest population and consumers. This makes the world perceive the country as a potential market and supplier.


Experts believe that hospitality, supply chain management, rail and aviation, infrastructure, renewable or green energy, EV stocks, EV battery recycling management, banking and finance, high-end technology industries, and special chemicals stocks will be in focus in the coming years. Hence, stocks related to these sectors can benefit from the success of G20's impact on the Indian Market. Let's take at a few lucrative options below.

Automobile and Metal Industry: India’s market size and position are improving in the Automobile and Metal Industry. India is currently one of the leading suppliers in Asia in these sectors, with more growth prospects.


Some stocks belong to the same segment with good market share, as well as good financials, including the ones from Tata Motors, Mahindra and Mahindra Ltd, SPELS, NATIONALUM, TATA Steel, RATNAMANI, WELCORP, MOTHERSON and HINDZINC, TIINDIA, JK Tyre and MRF.

Hospitality and Reality/Infrastructure: Tourism, hospitality, and infrastructure are co-related, and the Indian government has always focused on improving our infrastructure. In the last few decades, the country’s infrastructure budget spend has grown significantly, and there is still a lot of scope. Hence, the companies engaged in this may continue to receive higher benefits in the coming years. Just to name some, PRESTIGE, PHOENIX LTD, INDHOTEL, TATAINVEST,  RVNL, IRFC, IRCON, and  L&T can prove lucrative for traders. All these companies have good market shares in their respective segments, and their financials and management seem convenient.

Green Energy and Waste Management: Global Warming is the biggest concern globally, and there is rising pressure on India as the nation is among the highest carbon producers in the world. This is why it is crucial to realize that the companies providing solutions to overcome the issue will get a business advantage. There are some notable listed companies in the avenue, such as Tata Power, Adani Green, SW Solar, RACE, Antony Waste Handling Cell Ltd, Websol Energy System Ltd, Eveready Industries India Ltd EXIDE Batteries, Amara Raja Batteries Ltd, Kirloskar Electric Company Ltd, and Suzlon. These companies have a good track record and a robust plan to survive.

Aviation, Port, and Supply Chain Management: Supply Chain Management and transportation work as the backbone of any economy.  Strong and growing economies demand affordable, stable, and efficient aviation, ports, and supply chains, and whenever these avenues are discussed, a few companies pop up in mind. For instance, companies stocks such as MAZDOCK, GMRINFRA, Adani Ports, TCI, Indus Tower, Rect Ltd, IRCTC, CONCOR, INDIGO, BHEL, BEL, HAL, Taneja Aerospace and Aviation Ltd and TVS Supply Chain Solutions Ltd are popular picks. These companies are stable, efficient, and engaged in highly demanded businesses. In fact, some companies even enjoy a monopoly in their respective segment.

IT, Banking, and Finance: We have a good hold in the Information Technology, banking, and financial sectors. In fact, India is rapidly becoming a center for IT services and banking and financial markets. Even the nation’s GDP and growing FFI investment are inflowing via direct business investment and through the stock markets. In this regard, some reliable and good companies that could outperform in the coming years include names like TCS, LTIM, Infosys, ICICI Bank, IDFC Bank, SBI Bank, Tata Communications, LTIM, Wipro, LICHSGFIN, MCX, CDSL, and PayTM.


Special Chemicals and Allied segment: Today, stocks of companies such as Asian Paints, Anupam Rasayan India Ltd, Dhampure Sugar, FINCABLES, Navin Fluorine and Deepak Nitrate, Hind Zinc, and Hind Copper are either enjoying monopoly or having good positioning, and stake in their respective industry. As a result, they do have substantial scope to grow and perform well.


Conclusion


The G-20’s success is bound to benefit India and its businesses significantly. The summit’s positive outcome emerged as a lucrative opportunity for Indian stock market traders to capitalize on emerging trends in the discussed sectors and stay ahead of the curve. Aligning trading activity with the proposed policy changes and prospects, stock market traders can generate substantial earnings.  This is because G-20 host countries often attract business opportunities post-summit, promoting growth and boosting their stock prices and market potential.


The writer is a SEBI registered Research Analyst and Founder of Stock Market Today.


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