Let’s start with an interesting story to discuss how you can invest better by identifying the themes that drive growth & transformation.

In 1848, gold was discovered at Sutter’s Mill in California (USA). As the word spread, thousands of hopeful prospectors flocked to California in search of gold. But the real winners were those who provided tools and services to the miners.

Levi Strauss, for example, made durable denim pants for miners that became famous as Levi’s jeans, building a brand that outlasted the Gold Rush.

Samuel Brannan, a savvy store owner, bought all available picks and shovels and sold them to eager miners, making more money than most prospectors.

Companies like Wells Fargo thrived by offering banking and secure transport of gold, catering to the new arrivals.

While many miners left empty-handed, these enablers made steady profits, proving that in a gold rush, it’s often more lucrative to sell the shovels than to dig for gold.

How does it relate at all to identifying winning sectors?

The news

Last month, the National Stock Exchange (NSE) launched the Nifty Capital Markets Index and now Tata Mutual Funds has launched the first-ever index fund dedicated to this index.

Like those who profited from selling tools during the Gold Rush, today, this sector provides infrastructure to India’s growing pool of investors.

The Financial Services Infrastructure

As covered earlier, Indian households are becoming more comfortable with market-linked investments and are moving away from traditional options like Fixed Deposits.

This shift benefits companies that provide the infrastructure for financial services.

The number of investors registered with the NSE grew from 4 crore in March 2021 to 10 crore by August 2024.


No matter which stocks we buy or sell, we will always need three entities:

1. Stock Brokers

2. Stock Exchange (NSE & BSE)

3. Depository (NSDL & CDSL, holding stocks digitally)

So, these companies that enable investing are likely to gain more with the increase in the number of investors in India.

The data back this up too—over the last five years, the Nifty Capital Markets Index, which tracks companies that provide essential financial services like stock trading platforms and mutual fund management, has delivered about 34.8% compounded annual returns, compared to 22.28% from the Nifty 500.

The Nifty Capital Markets Index includes companies that provide digital infrastructure and investment-related services in India.

To conclude

To conclude, investing in enablers could be a smart strategy, as these entities often stand to gain regardless of which companies come out on top.

So, instead of focusing solely on the frontrunners, you can consider the potential of those working behind the scenes to make it all possible.