Discovering how to achieve returns in the market is all about being able to spot emerging trends and quantify what they mean, but of course, you already know that. Making the most of an investment opportunity is all about finding new ways to change how you move into the market, and it doesn’t have to be the same market each time. To show you that diversification is the name of the game, we’ve created a quick rundown of the key stocks we believe every savvy investor needs to know about. Let’s begin with transportation and infrastructure.
IRFC share price is recovering
After peaking at 155 per share at the end of October, it seemed that the IRFC share price would undergo something of a precipitous decline. Needless to say, anyone who has been active in the markets and checking their charts will see that the share price is battling back. While it may take time to return to its peak, there is no reason to suggest that the drop was anything more than a blip on a largely upward trend.
Investors can be confident in this assertion because of the fact that transportation, infrastructure, and the associated financing will always be necessities. While other industries face uncertainty due to disruptive technology like AI and AR, this is an industry that can be expected to experience great benefits. Greater efficiency and efficacy will see projects completed faster, resulting in higher levels of uptake by end users. The news for investors is that everything is looking positive in this space, provided you are prepared to ride out short-term dips and depreciations.
Ireda share price continues to fluctuate
Dropping from 210 to around 190 over the course of the last 30 days would potentially spell the end for many institutions in terms of investor confidence, but not in the renewables sector. Renewable energy will always be something of a political football with some arguing strongly for it while others are as equally strongly opposed.
COP29 in Azerbaijan has seen something of a chasm open up in the negotiations between developing island states and the developed world. This is to be expected in some senses, but it is something that will continue to impact the share price of renewables companies. When the world’s biggest forum for climate change action seems to be at something of a standstill, it is natural to see the share price of companies in that space fluctuate. But all is not doom and gloom.
The election of Trump in the US and the pro-business stance of the incoming administration has already seen a steady price of gold cement itself. While no one can say with certainty how long this will continue, there’s much to be said for the expansion of global trade that is predicted to follow. Will this positively influence renewables stocks when Trump himself is pro-oil and pro-gas? Only time will tell here.
Suzlon share price is oscillating yet steady
With a share price that has stood firm at around the 70 mark for the last month, Suzlon has been able to ride out the storm caused in the markets by COP29. A possible reason for this is the fact that they heavily focus on solar technology — one of the least controversial forms of renewable energy in more conservative sectors.
Solar has a natural advantage over other technologies because it is highly scalable and largely unobtrusive. It is also far quicker and easier to install than wind farms, although admittedly Suzlon’s other main focus is wind capture technology. While this means that the public perception of solar energy cannot be said to be the main reason for their share price resilience, it is a major contributory factor.
Online gambling represents an opportunity
Diversifying a portfolio and building it out into other markets is standard practice for any savvy investor. SGHC Super Group (SGHC) Limited (6.49) and IGT International Game Technology PLC (19.07) represent value in the investment world because of their future growth potential. While we have focused on renewables in terms of share price resilience, these are stocks that could still be wiped out by things such as US fracking or if anyone can create sustainable nuclear fusion.
Online gambling represents more of an investment in direct consumer behaviour and the continued love affair millions have with their smartphones. A cursory look at Indian gaming participation numbers will show you that double-digit growth in participation is not only likely but highly probable. This represents a solid investment opportunity for those looking to expand their portfolio and move away from infrastructure projects and into the direct consumer market.
One of the most interesting things is the way in which casinos with welcome bonus offers allow users to feel a greater sense of trust. These types of offers typically provide free gameplay and reduce the friction of having to deposit money into a new platform. Ideal when you want to be able to attract a new audience who are used to buying online entertainment, but want to feel a personal affinity with the brands they are choosing. Online casino bonuses are set to become increasingly personalised and tailored with the use of AI, likely resulting in continually accelerating participation rates for the foreseeable future.
UltraTech Cement has seen major movement of 4%
A thriving construction sector that is rebounding from COVID-19 and the associated restrictions on government spending is fuelling this impressive rise. The key is to be able to get in at the right point on the share price curve, allowing for an exit before the inevitable short-term downturn begins. Experience has shown that these types of shares typically have long-term value and investors should be prepared to move beyond short-term events.
Shares that experience explosive growth typically only arise in the tech sector where a very small number of employees can create something worth billions of USD. This will never be possible in the cement and raw materials world, and nor should we reasonably expect it to be. Instead, looking for a stock that is on a steady and healthy upward trend as a result of a quality product is the way to go.
Tata Consumer Products has grown by 4%
A surge in consumer spending amongst the middle class has seen demand for products rise, and with it, the share price of many of the major manufacturers. Tata is but one example of many in this space, and a key indicator that the rise is set to continue for several months to come. Exactly what strategic investors want to hear when it’s time to set the tone for a prosperous 2025.
Consumers are increasingly looking for deals but showing that they are also open to larger orders if they feel like they have found value. The key here is for businesses and manufacturers to build trust with their audience, and you can say exactly the same for wholesale suppliers. Anyone who is able to create a bond with their target market will always have the ability to sell a greater number of products at scale, as well as have the opportunity to expand into new sales verticals. The result is a robust and diverse sales pipeline that should continue to grow.
The final word
Investors would be well served to diversify their portfolios in line with global and local market trends. The expected pro-business stance of the incoming Trump administration is a global example, while the surge in Indian online gaming participation numbers is more of a local trend. Making sure to exploit real-time knowledge of both of these areas is the secret to a diverse and robust investment portfolio. Only then can savvy investors expect to achieve results that do their initial investment and background research justice.