According to India Avenue Investment Management, India is the growth market for investors this year – with a young population and strong economy. The company is based in Sydney and has an office in Mumbai.
India Avenue are very keen on the Indian banking sector and consumption providers.
Here are their thoughts:
“We expect companies in the Banking, Consumption and Industrial companies to outperform in the first half of 2019. Provisioning in Banks have bottomed out and we expect earnings to improve significantly from here, particularly given credit growth.
“Our top picks here are ICICI Bank, HDFC Bank, Kotak Bank, State Bank of India, IndusInd Bank and Axis Bank.
“Consumption will also remain a dominant theme as interest rate cuts are delivered, retail credit growth increases and the benefit of handouts to rural India (Government initiatives, populist measures and farm loan waivers) lead to a pick-up in spending.
“Our top picks here are Mahindra and Mahindra (autos/tractors), Dabur (consumer health products), Britannia Industries (biscuits, milk and basic foods), Crompton Greaves (consumer products) and Sun TV (media/television).”