»5 Minute Wrap Up by Equitymaster

On This Day - 10 DECEMBER 2019
2020 Will Be a Big Year for the Rebirth of India

Tanushree Banerjee, Editor, The 5 Minute Wrapup

I recently met a college friend of mine after many years. We had been in touch online but I met her in person after more than ten years.

She appeared very different from her pictures I had seen on social media. By different, I meant very lean and fit. I complimented her on how good she looked. On chatting further over a cup of coffee, she told me about her weight loss transformation.

It started with a strict diet she had followed. In one year, she managed to shed 30 kilos!

I was amazed and wanted details. She told me the initial process was to detox and get rid of all the junk from her body. So losing the initial 5 kilos was easy.

Then came the difficult part...

She didn't lose any more weight despite continuing the same diet. Her weight stayed the same for months. This was frustrating and she started doubting herself but she kept at it.

Suddenly after a few months, she started losing weight again and then it never stopped. Everything fell in place. She felt more energetic and more positive mentally. Now, her physical and mental state is as good as its ever been.

I can't help comparing such a transformation to what are seeing in the stock market now.

First, we saw the detoxification of the economy...

Demonetisation happened in in November 2016. Then came GST in July 2017. We added 3.4 million businesses to the taxpayer base.

We are in the stagnation period now.

GDP growth in the recent quarter was the lowest in the last six years. The mainstream media, and rating agencies are doubting the potential of the Indian economy.

Another year has almost gone by with almost nothing to show in the Indian stock market.

So what should you expect in 2020?

I strongly believe, 2020 will be the year of New India.

Why?

Everything the Modi government has done and many other big reforms that have taken place over the last three years, will now start to bear fruit.

{inlineads1}

The detox resulted in shedding of excess unwanted flab from the system. By excess flab, I mean companies with corporate governance issues. They were exposed and punished severely.

New India will be one with quality companies at the forefront. By quality, I mean companies with an honest management and a business that has a big competitive advantage over its peers.

These will be the businesses that will benefit from the big trends which will play out in New India.

Trends like favorable demographics, urbanisation, financialisation will start to unlock the huge growth potential of our economy.

And believe me...there are many more such irreversible trends driving the Rebirth of India...50 trends to be exact!

I discovered these 50 irreversible trends in my research into the Rebirth of India. I then developed a framework to pick the best stocks.

This is how I picked my best 7 stocks in the market today.

Just like my friend's health, I believe the health of India's economy and the stock market, will be as good as ever.

Make sure you cash in!

Warm regards,

Tanushree Banerjee
Tanushree Banerjee
Editor, The 5 Minute WrapUp
Equitymaster Agora Research Private Limited (Research Analyst)

PS: I recommend that you ignore the short-term negative news about India's economy. Instead, consider buying my top 7 stock picks for 2020 and beyond. Read more about how to get these 7 recommendations here...

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.

Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement

Disclosure & Disclaimer: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. The Author does not hold any shares in the company/ies discussed in this document. Equitymaster may hold shares in the company/ies discussed in this document under any of its other services.

This document is confidential and is supplied to you for information purposes only. It should not (directly or indirectly) be reproduced, further distributed to any person or published, in whole or in part, for any purpose whatsoever, without the consent of Equitymaster.

This document is not directed to, or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity, who is a citizen or resident or located in any locality, state, country or other jurisdiction, where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or what would subject Equitymaster or its affiliates to any registration or licensing requirement within such jurisdiction. If this document is sent or has reached any individual in such country, especially, USA, Canada or the European Union countries, the same may be ignored.

This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Our research recommendations are general in nature and available electronically to all kind of subscribers irrespective of subscribers' investment objectives and financial situation/risk profile. Before acting on any recommendation in this document, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the securities referred to in this material and the income from them may go down as well as up, and subscribers may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur. Information herein is believed to be reliable but Equitymaster and its affiliates do not warrant its completeness or accuracy. The views/opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. This document should not be construed as an offer to sell or solicitation of an offer to buy any security or asset in any jurisdiction. Equitymaster and its affiliates, its directors, analyst and employees will not be responsible for any loss or liability incurred to any person as a consequence of his or any other person on his behalf taking any decisions based on this document.

As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407