Looking for a theme to build your stock portfolio? Here’s one solid idea

I mentioned a few weeks ago how India is a land of opportunities. I also wrote about the CapEx boom that can lead to a megatrend. The spotlight on India is increasing for global manufacturing requirements. Domestic businesses are increasing their manufacturing and capital expenditure to meet world demand.

Adequate ports, rails, and roads must be in place to guarantee cohesive connectivity. Therefore this segment is witnessing a stronger demand than before.

To usher in a new era of infrastructure, the government has given a high budgetary allocation for infrastructure. The government allocated Rs. 10 lakh crore (US$ 130.57 billion) to enhance the infrastructure sector in the Union Budget 2022-23.

PM Gati Shakti is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure which will lead the economy in Unison.

The National Highways Network will receive an investment of Rs 20,000 crore to add 25,000 Kms in the current fiscal. Private investment is invited for four Logistics Parks in the form of a Public-Private Partnership (PPP). Policies such as 100% FDI under the automatic route have been set to ease foreign investment in India.

Further, the launch of the National Infrastructure Pipeline (NIP) has aimed at a total capital outlay of US$ 1370.34 billion. The below four sectors will amount to around 70% of the projected capital expenditure in infrastructure in India from fiscal 2020 to 2025.

Moreover, Production Linked Incentive (PLI) schemes encourage investments in this segment.

These steps and initiatives mark the start of a multi-year growth cycle. As the momentum in Infrastructure continues the increase in private investments will also start kicking in.

The pick-up in economic activity will boost the performance of India's core sector in the coming months.

As India is poised to grow, there lies a free way of attractive opportunities for companies in this sector. Solid growth prospects, healthy order books, and execution excellence are key factors that investors ought to keep a close eye on while evaluating companies to invest in.

Technical Outlook
Markets had a buoyant start for the week where the index initially witnessed a strong positive opening but the 18300 level was acting as a magnet for the index. On the 11th Nov i.e. Friday, the Benchmark index witnessed a strong gap up opening near 18300 levels and prices finally succeeded to close above the same.

On the weekly chart, NIFTY has again formed a bullish candle and continues its prior bullish trend. The weekly trend oscillator RSI is above its respective reference lines indicating positive bias.

The chart pattern suggests that if NIFTY sustains above the 18,300 level it could witness buying which would lead the index towards the 18,600 level. However, if the index breaks below the 18,000 level it would witness profit booking towards 17,800 and followed by 17,650 levels. Traders are advised to continue with an optimistic approach and now, with other sectors chipping in, we expect a good broad-based buying in the forthcoming week.



Expectations for the week
From a global standpoint, a slew of economic data is set to be released next week. As the fight against inflation is far from won, market participants will keenly watch the inflation figures of the UK and India. Additionally, UK’s unemployment rate would be in the spotlight given it was 3.5% in August, the lowest since 1974. In the US, figures for Production Price Inflation (PPI), Industrial Production, and Jobless Claims are expected which may influence market sentiment globally. Further, China’s Industrial Production data is due next week. Back home, D-street will see a number of new IPO listings. On the other hand, investors would be interested to see if the market rally in the frontline indices continues. Nifty50 closed the week at 18,349, up 1.28%.