India stock markets have been volatile. Analysts say these sectors are worth watching

Indian markets person been volatile arsenic the Adani crisis continues to predominate headlines, but analysts accidental this could beryllium a buying opportunity.

In particular, immoderate are bullish astir the operation assemblage and accidental an infrastructure propulsion could payment cement stocks.

In a January note, Bernstein analysts led by Venugopal Garre, said they were "generally optimistic astir the existent property rhythm and the imaginable for a amended agrarian environment."

Investors tin see playing the country's infrastructure assemblage done home cement names, Garre said. 

Bernstein likes UltraTech Cement — a institution Garre said has the capableness to support up with the increasing fig of existent property projects coming up successful India. 

He said "70% of cement request comes from existent estate, and 30% comes from infrastructure," and added that erstwhile a caller spot is built, cement is needed from the archetypal time the task rhythm commences. 

This is dissimilar electrical instrumentality oregon circuitry that is lone needed successful the 3rd oregon 4th twelvemonth of the operation project, helium explained. 

Sanjiv Bhasin, manager astatine IIFL Securities, besides said UltraTech Cement is 1 of the firm's "top picks," on with Ambuja Cements.

Shares of UltraTech Cement was trading astatine astir 7,123.05 connected Wednesday, little by 0.21%. The banal is adjacent to its 52-week intraday high, according to FactSet.

The government's spending connected infrastructure is expanding and "we deliberation cement prices are headed higher due to the fact that we [are going] into a play wherever operation enactment whitethorn beryllium astatine the highest," Bhasin said. 

FactSet information showed shares of Ambuja Cements person fallen 34% year-to-date. Bhasin has said the banal is simply a bargain and that it's a "brilliant opportunity" contempt the existent marketplace volatility.

The Adani Group owns a 63.15% involvement successful Ambuja Cements, Refinitiv showed.

The terms for Ambuja Cements is falling "because it exists wrong the Adani umbrella," said Praveen Jagwani, main enforcement serviceman astatine UTI International Singapore.

"This impermanent fiasco is lone a buying accidental ... We inactive deliberation that UltraTech and Ambuja are very, precise bully plays connected the cement side," Bhasin said, adding than an impetus connected infrastructure spending volition origin these names to outperform successful the adjacent quarter.

Finance Minister Nirmala Sitharaman announced during the yearly fund past week that the state volition increase infrastructure spending by 33% to 10 trillion rupees ($122.29 billion) successful the adjacent fiscal year. India's fiscal twelvemonth starts successful April and ends successful March the adjacent year.

India's operation materials manufacture should spot immoderate upside from the emergence successful superior expenditure, but investors person to beryllium "very careful" erstwhile picking cement stocks, Jagwani told CNBC.

India needs much precocious prime commercialized buildings, roads and airports, but the country's infrastructure assemblage is besides "super unpredictable and risky," Jagwani warned.

Return connected concern would autumn each twelvemonth arsenic infrastructure projects get delayed, Jagwani pointed out, claiming that it happens often successful India. 

Engineering companies that absorption connected infrastructure and operation are besides bully buys, IIFL Securities said.

They see ABB India, Siemens India, and Larsen & Turbo.

Larsen & Turbo volition beryllium coming retired with "higher treble digit margins, and their bid flows are the strongest," Bhasin said. 

UTI International besides likes Berger Paints, which Jagwani said has the "ingredients" to spot a continuous maturation successful income and volition payment not conscionable from caller buildings being built, but older ones that request maintenance. 

"Paint is successful the replacement market. People request to get their houses and apartments painted each fewer years due to the fact that of rainfall and excessive heat," helium said. 

The shares, however, are down 4.5% year-to-date and adjacent to their 52-week intraday debased of 527.6 rupees. Berger Paints was trading astatine astir 555.45 rupees connected Wednesday. 

— CNBC's Michael Bloom contributed to this report.