Ambit recommends buying stocks with more exposure in South India than the North. Here's why

In January, a leaked copy of a report by the National Sample Survey Office (NSSO) claimed that the unemployment rate stood at a 45-year high of 6.1 percent during 2017-18.

This can become problematic as it can lead to a disruption in the production, particularly in the North, as the region has seen more unrest due to lack of jobs.

"Unless the jobs problem is resolved aggressively, the next decade may not be as peaceful. And whilst the problem of economic discontent remains at large, there is also a risk of India's political discourse getting captured by competitive populism," the report stated.

Ambit advised the investors to stay away from 'discretionary and leveraged consumption plays', reasoning that the household savings ratio of the country has hit a 20-year low of 16 percent in the financial year of 2016-17, which could result in a further drop of India's overall GDP growth. This is because the savings pool of a country can only grow if the economy is able to create jobs and in turn, see growth.