Here's your 'Weekly Industry Insight' for all your stock decisions
What's the story
Thinking of making money by investing in stocks? But which stocks would give the highest returns throughout this week? And which ones should you avoid? For all such questions, we bring our 'Weekly Industry Insight' that gives an overview of various industries, so that you know the sectors you should invest in and the ones you should avoid. Here's the fine print.
Tobacco
This week our first bet is on the Tobacco sector
Our first bet is on the Tobacco sector which is currently growing at a rate of 1.65% with an advance-decline ratio of 4:1. The rationale behind the bullish perspective is the high consumption of tobacco in India. Moreover, in the Budget 2018-19, the government kept the taxation on cigarettes unchanged, which had come as a big relief for the Indian tobacco industry.
Banking
Our second choice for the week is the Banking sector
This week, we are also bullish on the Indian Banking and Financial Services sector, which is currently growing at a rate of 1.16% with an advance-decline ratio of 0.99. The sector is poised for robust growth owing to an increasing demand for both corporate and retail loans. Moreover, RBI's corrective measures against bad loans and frauds are likely to provide further impetus to growth.
C&C
Pick No. 3: Cement & Construction sector
Our third pick is the Cement and Construction sector, which is also currently growing at a rate of 1.16% with an advance-decline ratio of 0.98. The sector enjoys growth support from a high level of activity in the real estate sector along with high government spending on smart cities' construction and urban infrastructure. The sector further gets the backing from lower taxation.
Oil & Gas
Take a cautious approach towards Oil and Gas industry
Knowing what not to buy is equally important as knowing what to buy. For this week, we advise you to not put money in the Oil and Gas sector, which is facing a negative growth rate of 0.92% along with an advance-decline ratio of 0.26. Besides high global prices, the sector remains bogged down by fears over its contribution to global warming.
Manufacturing
Beware of investing in the Manufacturing Industry
In addition to the Oil and Gas sector, we advise you to go bearish on the Manufacturing sector. It is currently witnessing a negative growth rate of 0.20% with an advance-decline ratio of 0.66. The sector faces challenges in the areas of human capital and sustainable resources, which require an upgrade in India's education curricula, a revamp in vocational training programmes and improvement in digital skills.