Investors are frequently urged to make long-term stock investments to gain from compound growth. When a company starts doing business and expands, the value of its stock rises, rewarding shareholders who invest for a longer period of time.
List of long-term stocks to buy now in India based on various sectors:
Based on Trends
Top stocks are selected by cutting through the everyday bustle of news flow. Cross-sector insights to offer perspective on megatrends related to Make in India, trade flows, developing India, financial inclusion, consumerism, and energy transition. HDFC Bank, ICICI Bank, Infosys, Bajaj Finance, Havells, Titan, and other stocks have exposure to the themes mentioned above.
Tailwinds involving Consumption and Demographics
A substantial 10-15% per year apparent growth potential over the next ten years is supported by tailwinds from India’s demographic dividend, a rising ambitious consumer segment, and growing formalization tendencies.
Stocks like Asian Paints, Zomato, Hindustan Unilever, Titan GCPL, Havells, DMart, and Apollo Hospitals cover this market share growth.
As India widens its financial services, the global brokerage sees potential in credit, financial services delivery, and deposits. HDFC Bank, SBI, and ICICI Bank are top picks in the Indian financial sector.
Financialization of Credit and Savings
The growth of alternatives to the banking system through increased allocation to insurance, mutual funds, and direct investments has been the biggest story in the mobilization of savings in recent years. Favorite participants in this theme include SBI Cards, HDFC Life Insurance, HDFC Bank, and ICICI Bank.
Manufacturing Inclination and Make in India
The conditions are ideal for India to experience a manufacturing revival. Governmental intentions, policies, and the mechanics of the global supply chain have never come together in this way before. The companies in this category include Divi’s Lab, Havells India, Bajaj Auto, TVS Motor, Cipla, and Solara Active Pharma.
Increased Services Trade
Within the next five years, India’s IT sector earnings will be predicted to compound at 15%. Infosys, HCL Tech, Wipro, TCS, and Tech Mahindra are the top choices in that order. The listed REITs provide exposure to increasing worldwide captives.
Building and Remodeling India
Given the numerous potential in energy, transportation, urban infrastructure, and rural housing, India’s $1.5 trillion infrastructure plan and associated monetization pipeline are worth a wager. Concor, ACC, UltraTech Cement, Adani Ports, Siemens India, ABB India, L&T, and KEC are some of the stocks exposed to this subject and have the most substantial five-year projected profit growth.
Alternatives for Energy Transition
In India’s goal for a lower-carbon economy, opportunities exist in renewable energy, alternative fuels, and improved infrastructure. Some of the stocks that suit the description in this group include Reliance Industries, NTPC, Tata Power, ABB, Power Grid, GAIL, Siemens, PLNG, and HPCL.
Despite India’s recent reversal of on-farm reforms, increasing formalization and the introduction of private finance bode well for giving rural India the much-needed dynamism. This category includes stocks of PI Industries, Bharat Rasayan, UPL, DCM Shriram, Avanti Feeds, Kaveri Seed, and Godrej Agrovet.
Digitization and systemization
The momentum for new business registration is still being supported by digitalization, GST, manufacturing tax reductions, China+1, import taxes, and PLI. The number of new formal enterprises in the industrial sector has increased 2.5 times since 2019. Tata consultancy services, HDFC Bank, ICICI Bank, Honeywell automation India, and Sterlite Technologies are top stocks in this category.
Irrigation and Fertilizer
Opportunities in agriculture and related sectors exist in crop protection chemicals, irrigation, loan flow, and exports. Rallis and UPL are their preferred responses to increasing crop protection and pesticide use. Additionally, it appreciates the commercial strategies of Bayer CropScience, PI Industries, and Sumitomo Chemical but feels that its values are excessive.