Oil & Gas - Oil drilling & Exploration Stocks

Oil exploration in India was kicked off by NELP program of the government. Shortage of drilling equipments is a major problem for existing oil block holders and new licensing programs. Companies are in the process of acquiring new equipments inorder to cash in. The outsourcing rates for the equipmets is also going high due to potential shortage till 2012. So, this is the time to enter in to the best sectoral stocks such as Shiv-Vani, Hindustan and Jindal. All the above companies have good exploration experience in India. Hindustan Oil Exploration Co. has higher P/E due to expections on higher profit margins in future.

Finance - Equity Research & Broking Services Stocks

Retail broking and equity research services are increasing day by day based on high economic activity and more small investors arriving to the capital market. Big houses in this sector had started expanding its offices in small towns to get greater market share in coming days. There is also growing consumer demand for added financial services. India Infoline, IL & FS Investmart, Geojit Finacial are best bet in this demand driving sector.

Textiles - Readymade Garments stocks

Textiles - Readymade Garments industry is growing at CAGR of 20%. Major revenues are from exports to EU and US. Domestic market is also creating more demand. Capacity addition is going on across the sector on high growth expectations. All the stocks have considerable profit margins compared to other textile sub-sector stocks. Pearl Fashions, Indus Fila & Page are best bet in this moving sector.

Tourism - Hotel stocks

Hospitality industry has great potential in coming years due to booming economic activity and high inflow of foreign tourists. Growing at CAGR of 15%. It has also seen spectacular growth in the past. Government incentives also boosts this thriving sector. Mid cap stocks such as Asian Hotels, Hotel Leela Ventures and Taj GVK Hotels are good bet in this sector. All these stocks trading at more or less same P/E levels compared to their large cap peers. Promising investment.