Introduction: 

There are differences in the risk and growth potential of different sectors. Even though it is impossible to forecast market performance, you can identify the industries with the best chances for success in 2024 by looking at current trends and professional insights.

This blog provides you with an overview of the top stocks to add to your watchlist from each of the five best sectors to watch this year.

The Top five industries to be aware of in 2024:

1. Infrastructure: Budget allocation to the infrastructure sector—which includes roads, trains, airports, ports, and more—has increased significantly in the past. Allocation to infrastructure projects rose by 39% YoY in FY23. The sector is expected to grow as long as the government maintains its emphasis on infrastructure development. The government’s plan to accelerate the National Infrastructure Pipeline (NIP) project increases the likelihood that the industry will expand. Businesses engaged in engineering, renewable energy solutions, and building materials will profit from it. Given that infrastructure investment can boost employment and the economy, the industry appeals to investors seeking steady, long-term returns.

Invest in the following top stocks: 

• Larsen & Toubro (L&T)
• IRB Infrastructure Developers
• KNR Constructions
• HG Infra Engineering
• Indian Railway Finance Corporation
• Rail Vikas Nigam
• Jupiter Wagons

2. Real estate: The Real Estate Regulatory Authority (RERA) and Affordable Housing Program, initiated by the government, aim to support the growth of the real estate industry. With the expanding urban population, the commercial real estate sector is also expected to witness increased demand. These favorable government programs, rising urbanization, and other factors make the sector a promising investment avenue. 

Invest in the following top stocks: 

• Indiabulls Real Estate
• Godrej Properties
• DLF Ltd.
• Prestige Estates Projects
• Lodha Group
• Oberoi Realty

3. Renewable Energy: For a number of years, the Indian government has promoted the use of wind and solar energy. It also encourages the use of other renewable energy sources, such as bioenergy and small hydropower. Important indicators of the sector’s possible expansion include the government’s support, the growing demand for clean energy, and the declining costs of renewable energy technology. Businesses engaged in the production and development of renewable energy should be on investors’ radars as they may present attractive investment opportunities.

Invest in the following top stocks:

• National Thermal Power Corporation (NTPC)
• Oil & Natural Gas Corporation
• Reliance Industries
• Adani Green Energy
• Open Grid Corp
• Gujarat Gas
• Tata Power

4. Technology: This industry is still booming thanks to developments in cybersecurity, cloud computing, and artificial intelligence. The government’s “Digital India” initiative promotes the use of digital technology and has helped the industry grow. Many multinational corporations collaborate with Indian companies to carry out their IT projects. This outsourcing model creates jobs for qualified workers and substantially grows the industry.Growing demand for digital technology, government regulations, and a large pool of highly skilled workers are expected to drive the sector’s growth in the years to come. Investors need to seek out businesses involved in cloud computing, e-commerce, fintech, cybersecurity, and artificial intelligence. 

Invest in the following top stocks:

• Infosys
• Wipro
• HCL Technologies
• Reliance Industries
• Tata Consultancy Services

5. Healthcare: India’s population is getting older, there are more chronic illnesses, and people have more money to spend on healthcare, which is driving up demand for services. Through the provision of health insurance to more than 100 million people, the government’s Ayushman Bharat program seeks to enhance the healthcare sector. Better healthcare services and investment opportunities have been made possible by an increase in budget allocation. Businesses in the healthcare industry can benefit from rising health insurance penetration, government initiatives, technological advancements, and increased demand for healthcare goods and services to increase their market share and open up new business opportunities. Investors can seek out businesses that offer pharmaceuticals, medical devices, and healthcare and diagnostic services. 

Invest in the following top stocks: 

• Cipla
• Dr Reddy’s Laboratories
• Divi’s Laboratories
• Sun Pharmaceutical Industries
• Apollo Hospitals Enterprise

Conclusion: 

You can think about investing in companies from the aforementioned sectors if you want to profit from investments in the best-performing industries. To reduce risks, always remember to perform in-depth research and concentrate on diversifying your portfolio across industries.