Manufacturing, consumption, Internet: Sectors that are likely to produce multi-baggers in coming years
Indian economic outlook: Nearly 40 per cent of the BSE 200 stocks have generated more than 20 per annualised returns over the past two decades, two times the ratio for emerging markets (EM), suggesting ample alpha opportunities.
Indian economic outlook: The Indian economy has grown sevenfold in the past two decades, delivering a nominal gross domestic product (GDP) CAGR of 10 per cent, analysts at Goldman Sachs wrote in their latest report, released on June 1. Further, equity returns have matched this strong economic performance, with the BSE 200 offering 16 per cent/13 per cent annualised returns in local currency/USD terms, almost double the 7 per cent offered by the MSCI EM index.
"Beneath the headline index, nearly 40 per cent of the BSE 200 stocks have generated more than 20 per annualised returns over the past two decades, two times the ratio for emerging markets (EM), suggesting ample alpha opportunities," the report added.
The analysts further said that the stable macro and improving microenvironment create a runway for strong medium-term growth for India. As such, investors should focus on industries/pockets of the market that offer strong growth opportunities over the medium term and then distill the broad themes into targeted stock ideas, leveraging the insights from the historical multi-bagger study.
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The brokerage firm has listed 10 broad growth themes that hold the prospect of significant growth in the coming years in India. Take a look.
Source: Goldman Sachs report
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