In the past decade, India has witnessed tremendous changes in terms of their saving as well as spending habits. The rise in income levels, increasing adoption of the "WEST" culture and rising awareness of health has led to higher discretionary spending. Not only in terms of spending but saving habits have also changed from physical savings, traditional gold and FDs to mutual funds. This has led new sectors to emerge as winners and in our view these below sectors have the potential to become multi-baggers as till now we have only managed to scratch the surface.
Having said that, we are not ruling out the fact there is a downside potential in these sectors in the near term due to the Covid-19 pandemic. However, if one has a long term vision (3 years+), then these stocks have a strong potential to become multi-baggers. The prudent approach would be to invest in a phased manner in the stocks mentioned below. The sectors and stocks within these sectors that we are talking about include General Insurance and we consider HDFCLife and ICICIprulife as the main stocks which may get benefitted the most with the ongoing crisis.
The non-life insurance industry has grown at a strong CAGR of 17% in the last 18 years and yet the penetration of non-life insurance stands at 0.93% of India's GDP as the compared world average of 2.80%. The non-life insurance comprises of Motor, Health, Fire, Marine, Crop/Weather, and other insurance. The private insurers have consistently been able to gain market share. ICICI Lombard is the fourth-largest player in the non-life insurer and the largest private-sector non-life insurer in India. It's market leadership, strong brand name, diversified product line, robust risk management is key strengths of the company.
In the near term, the Covid-19 pandemic would take a hit on the company's performance due to lower investment income, possible increase in claims. However, in the medium term given the rising cost healthcare and increasing uncertainty would lead to higher adoption of insurance in India. Therefore, notwithstanding the near term weakness, we remain constructive on the secular growth story of the non-life insurance industry.
So, you can add aforesaid stocks referred in the initial paragraph like a SIP in a slow and steady way to get good stocks in your portfolio.
We look forward to your reading this line which has a great gist in it and hidden meaning. "Don't major on minor things in life. Focus on what matters the most. Think long-term, behave short-term."
So, whatever action in present times you will undertake will be for the betterment of tomorrow and one can use the present available opportunity to cash on by using the intra day tips for today to make money trading by 11:30 Am every day and if you wanna get the profit courtesy Corona volatility, then you can not afford to miss the best bank nifty option tips for tomorrow as higher the volatility higher is the profit.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
