Population Boom Spurs Hunt For Stock Market Winners In India

India's ambition of becoming a manufacturing hub is gaining more traction as global firms see geopolitical and regulatory risks when investing in China.

Thronged by hundreds of people, including some Bollywood celebrities, Tim Cook's excitement was palpable as the chief executive officer of Apple Inc. officially opened its first company-owned store in India in April.

India is at a "tipping point," he went on to say on a call with analysts after his visit. It was that same month when India also earned a new title as the world's most populous nation, burnishing the appeal of sectors that cater to a burgeoning middle class and young consumers.

The milestone serves as a reminder of the growth potential for India's $3.4 trillion stock market - which recently reclaimed its spot as the world's fifth largest - as the South Asian economy takes a bigger pie in global manufacturing and consumption, currently dominated by China. With two-thirds of India's 1.4 billion population in the working age, its "vibrancy" and "dynamism" - two attributes Cook used to describe the market - contrast with many Asian peers grappling with shrinking populations.

Home to more than 5,000 listed companies, India offers global investors a wide range of options. Consumption, financial services, infrastructure, digitalization and health care are among sectors seen benefiting the most in the coming years from the demographic composition.