Indian Stocks - Where do we go from here?
Just like the overall market, Indian ADR’s have struggled since 2008 rolled in.
Note: Videsh Sanchar Nigam Ltd. (VSL) is now called Tata Communications (TCL)
As far as I am concerned the only Indian ADR worth looking at this point is Sterlite (SLT). ICICI Bank (IBN) and HDFC Bank (HDB) are also worth considering but I would wait for a little better entry point.
As far as other ADR’s are concerned, I don’t see anything exciting at this moment. Let me know if you think otherwise. Any ideas would be welcome.
ETF’s/ETN’s/CEF’s
The recent launch of Wisdomtree India ETF (EPI) looks better than the India IPATH ETN (INP). Energy plays a bigger role in EPI and technology plays a bigger role in INP.
The Powershares India ETF (PIN) is about to launch as well. The ETF pick might end up being between Powershares India ETF vs. Wisdomtree India ETF.
Although the Indian markets have been hit by the turmoil here in the United States, India still remains an attractive investment destination. It’s certainly good to see the launch India ETF’s to give people more choices to invest in India.
Full Disclosure: I am long Sterlite (SLT)
March 4th, 2008 at 9:33 am
Nice chart.
I wonder if there is a way to employ long Short strategy here. Buy EPI. Short Auto and Outsourcing sector ADRs. Put the proceeds into pharma and financials.
April 6th, 2008 at 12:01 am
The Sensex has had one of the best five year runs in the history of investing. The last 100 days have shown that India is the on the whip end of the global volatility. We have done some sectorial analysis on the various India funds and their components at www.indiafund.net