SECTORS TO WATCH OUT FOR

In this entire bull run two of the sectors which have been totally ignored for some reason or other is Textiles and Paper.Though some of the reasons have been fundamental in nature i think the bear run in these stock to a large extent has been overdone.Textiles happens to be one of the largest contributors to the GDP and also one of the largest employers in the organised sector.Post the Quota removal there was much hope and hype around this sector but soon this has evaporated due to slimmer margins in the export markets primarily due to competition from China.If one has to look at the growing domestic markets then the opportunity for better margins exist here and the companies which are building brands in the domestic market are better placed to leverage the growing market.

The paper sector grows in tandem with the GDP (growing consumption of paper and related products) in tune with increasing focus on education.Per capita consumption is way behind other developing economies in India.This sector is vastly fragmented which provides scope for consolidation and unlocking of values.

In coming days I will be posting some long term picks from these sectors.So Keep logging in to check for the same.