With the markets reaching a all-time high and volatility in the markets seen as never before, one wonders, if there is any avenue left for investment. The bigger questions are if one should stay invested, or exit or take fresh positions. I would say, while the valuations may look expensive, the (India) Infrastructure story is yet to unfold. The current government with its 3 wise men -Dr Manmohan Singh, Mr Chidambaram and Mr Montek Singh Ahluwalia, has big plans for India. This includes mega plans for roads, rail and airports which will facilitate the next boom. The team has proven credentials for implementing reforms. So the sectors to watch out are Cement, Steel, Aluminium and Construction. Besides the Auto Industry looks promising for the next couple of years. I would vouch for these industries as growth stories for near and long term.
