High decibel levels are only to be expected at the stockmarket. In fact, trading would be so much the duller without it. The past few weeks, however, have been louder and noisier than average. The uncertainty on FDI (foreign direct investment) reforms. The government's apparent confusion over allowing oil companies to raise prices. The partial failure of the monsoon. The transaction tax. There has been plenty of subject matter for traders and investors to exercise their vocal chords on.

Missed most of it? Good. Equity investing, especially for the long-term, is best practiced away from the rabble-in some place where you can think calmly and clearly for yourself. As the savviest investors know, opportunities do keep shifting, but it's only those who're too lazy to look who think this means opportunities are vanishing. They are not. Readjust your selection criteria, and you could be looking at some hot stocks that are not about to cool off anytime soon.

What might the criteria be? "For the long term," says Shriram Iyer, Head (Research), Edelweiss Capital, "we recommend sectors which are immune to routine government policies and have their own pace of growth." Adds Nandan Chakraborty, Head (Research), Enam Securities, "Under uncertain conditions, investors have to restrict (their picks) to leaders." Closer scrutiny reveals the following as recommended hot picks.

Bharat Electronics

Yes, a public sector unit (PSU). But a PSU can have its own advantages. This one caters to defence, a sector that requires utmost confidentiality. And it is practically a monopoly in its fields of supply. Though its financial performance has been moderate so far, with decent growth (revenue and net profit just about rose in double digits last year), it has much to look forward to in the recent increase in India's defence budget to Rs 77,000 crore, up 27 per cent over the previous year's outlay. Further, it is already sitting on a huge order book position (of Rs 7,000 crore for the year ended March 31, 2004). Moreover, it is almost a zero-debt company and has huge cash reserves (Rs 85 per share), which gives it enough strength for expansion. The p-e ratio: a tempting 12.

BHEL

Another PSU, but not amongst those that are susceptible to shifts in government policy. Unlike many of the other PSUs, this company has always performed under conditions of market competition, and logged revenue and net profit increases of 14 and 43 per cent, respectively, last financial year. This, after writing off its entire voluntary retirement scheme (VRS) burden in that very year (as against the three-year norm). It is also sitting on a huge order book position, having notched up additional orders worth Rs 16,500 crore last year. "As BHEL is quoting at 13 times its expected fy05 earnings (against the expected growth rate of 30 per cent), there is a big margin of safety in this counter," says Srinivas Rao Ravuri, senior analyst at Motilal Oswal Securities.

Great Eastern Shipping

Shipping rates are on the ascent, and this is a trend that would be sustained by the global economic recovery that's currently underway. And Great Eastern Shipping, the largest private shipping company in India, is well poised to make money on the opportunity. It already shows in the revenues and net profit figures, which have gone up by 41 and 107 per cent, respectively. The recent Budget helps reduce its tax liability by allowing shipping companies to shift to tonnage tax. "Its profit during fy05 should be at least Rs 575 crore (compared to Rs 471 crore last year)," says Sachin Kasera, senior analyst at Pioneer Intermediaries. Given its low p-e ratio of 6 and its potential, this is a good long-term bet.

HDFC Bank

This bank boasts of a consistent growth record that it has very little risk of losing. This consistency has been achieved by its focus on its low-cost retail deposit base (during the last financial year, its savings deposit base grew by 70 per cent) and continued expansion of its retail loan portfolio (grown by 110 per cent during the year). The retail approach has served it well, as its recent performance shows. Its q1 results are good; its operating income and net profits have both grown. And its small treasury income is an added cause for stability.

Infosys

Infosys is Infosys. It has beaten the street again with its better-than-expected first quarter results, with its net sales and net profit up by 12 and 17 per cent, respectively-and that too, on a quarter-on-quarter basis (call it internet time, which just moves a lot faster). Investor sentiment vis a vis the stock got another boost from the upping of the company's own projections, which are known for their characteristic erring on the lower side. Management confidence can be seen in its aggressive employee addition too (2,305 taken aboard just this quarter). The picking up of the global economy (especially the US) and the weakening of the rupee are new factors that go in Infosys' favour, even if the stock bears a high p-e ratio.

IVRCL Infrastructures and Projects

This is a growth company selling cheap. Last year, its topline leapt 76 per cent and bottomline, 153 per cent. But it is still quoting at a lowly p/e of 4.5. This is the pattern for construction companies in India. Why? Growth in this business can be quite erratic, not to mention the industry's sleaze. However, there is reason to believe IVRCL Infrastructures and Projects can defy the pattern, given that India is slowly but surely getting into infrastructure mode-with bridges, ports, airports, power projects and roads being built (they could do with global-scale speed, though). Besides, IVRCL Infrastructures and Projects is not expected to do any shady deals. "With Citibank having a stake (with board membership), corporate governance concerns are taken care of," explains Iyer of Edelweiss.

Ranbaxy Laboratories

Ranbaxy has been an aggressive overseas player for many years now, and this strategy is paying off. "Ranbaxy is the only Indian pharmaceutical company that has achieved critical mass in the US," says Iyer of Edelweiss. Further, its strategy of diversifying into the European market is also yielding good results. For example, during the quarter ended March 31, 2004, sales went up by 58 per cent in the UK and 163 per cent in Germany. It also demonstrates its ability to sustain its growth momentum without any major product launches. With several applications pending before the US Food and Drug Administration (USFDA), this company has the potential of delivering positive surprises.

Thomas Cook

The growth prospects for the travel and tourism sector are looking bright after a long time, and pent-up demand-especially in the outbound segment-could go heavily in favour of Thomas Cook. With strong financials, a global brand name and industry leadership, this company is poised to capture much of the excitement. The company has had a good first half this year, with strong growth. With its plans for a chartered airline expected to take off by early next year, the company is likely to maintain its momentum. "With the expected growth rate of 38 per cent in earnings (for the year ending October 30, 2004), the current valuation (20 times the prospective P/E) is attractive", says Chaitanya Choksi, analyst at IL&FS Investsmart.