Hello sir.

1) Indian economy will grow at 8-12% GDP.
2) Indian stock market is one of the safest stock market in world.
3) US economy will show only 2-4% growth.
4) No big war or related problem on national or international stage.
5) No serious oil problem. Oil rates will be within $125 pb.
6) No midtime election or political uncertainity.
7) No more Harshad Mehta or Ketan Parekh.

Pls suggest some Evergreen stock for next 3 to 5 years on above scenario.

It is very hard to judge the proper investment for future at the present time.
As we see, ur views are mostly of fundamental, and hence for Long Term.
But ur prediction will guide to choose from best.

Thnx and regards.

Forbes had chosen following stock for Lifetime Investment:

1) Ericsson: (Sweden) Master in Network and Communication.
2) Glaxo Smith Kline: (UK) Farma Major with lots of patents in hand.
3) Turcell: (Turkey) Telecom Giant.
4) Petrobras: (Brasil) Latin American Petroleum & Natural Gas Co.
5) ABB: (Swiss) Elecrical Giant.

Mr Alchem sir, only one (Petrobras) of these are from conventional field like Peroleum, Steel or Cement. (Not due to its field, but due to infinite opportunity of finding fuel storage in latin America)

So whats ur recommendations for Indian Horizon now?

Waiting for ur reply.

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.

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Waiting for your picks.

What are your picks Alchemist bhai?

Alchemist

Are BHEL and L&T worth investing at current levels ?

I think his message is pretty clear. Power sector stocks just for a year or 2, as long as the bullish phase continues and financial sector stocks for the super long term perspectives. Further you should yourself analyze depending upon your thirst and risk taking appetite. Finally, one should decide for himself where his money should go.

My bet would be in the pharmaceutical and healthcare sectors. With all the growth in India, the existing expenditures on healthcare is minimal compared to the developing countries. US for example spends 14% of GDP on healthcare. India has a long way to go...Within the pharma sector, I would bet on companies with a strong domestic sales rather than export players.

I feel stocks like L&T, BHEL, NTPC and other Navratna or Mini Navratna companies are the best and safest bets.

Waiting for your picks sir.