My best bet would be companies from the financial sector.
As India's economy is expected to grow at a robust rate from next 20-30 years, the biggest beneficiaries of this growth will be companies from the financial sector.
Real Estate, Telecom, Power, Infrastructure etc may get saturated as there is a limit of how much a person needs of each of these sectors. A person's requirement for financial services can keep increasing as long as his wealth keeps increasing.
Few days back I was looking at the list of biggest companies in the US and I found that nearly half of them were from the financial services sector (banks, investment bankers, insurance firms etc).
Banks like ICICI Bank and HDFC Bank have still a long way to go. If you are looking for a real long term investment, ICICI Bank would be a great pick.
(Avoid PSU banks....they are only going to lose market share to private banks).
People are very bullish about power sector. However, I do not see much strong growth for the sector in the super-long term.
I read about
this report by the International Energy Agency on India's energy scenario in 2030.
It predicts that India's electricity production will treble (compared to 2005) by 2030. Now this may seem huge growth, but if you look at annualized growth, it is now even 5% per year.
The report also predicts that India needs $1.25 trillion in energy infrastructure from 2006 to 2030. Now this is a real big figure. If this much investment goes into energy infrastructure, biggest beneficiaries will be capital goods sector - especially the companies catering to the power sector like BHEL.
I will see if I can find some good companies in the capital goods sector at reasonable valuations.