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Are Indian Stocks getting ahead of themselves?

Himanshu Pandya — Mon, 01 Oct 2007 02:24:04 +0000

Indian stocks continued their strong run last week as the BSE Sensex touched an all-time high of 17,361.50. Sensex, Bombay Stock Exchange’s benchmark index which consists of 30 companies, is up about 25% year-to-date.

Not all US listed Indian stocks have benefited by the strong run in the Indian markets. If you look at the chart in the previous article you will see that the strong performers have been the Indian Banks, HDFC Bank (HDB) and ICICI Bank (IBN) and the Indian ETF (INP). The newly listed Sterlite (SLT) has also performed well. However, IT, Outsourcing and Internet stocks have all under-performed.

But is the Indian Market getting ahead of itself?

Following is a statement issued by Indian Finance Minister P. Chidambaram on Friday, as he told investors “to do their homework” before investing in the domestic share market that has raced to new highs on the back of overseas fund flows. This after the BSE Sensex set new highs on eight successive trading days. So far, overseas funds have invested $11.63 billion dollars in Indian equities this year, compared $4.86 billion dollars they pumped in during the same period last year. (Source: AFP)

Optimism is running high in India and further gains are expected. Why not? The Indian Economy is in a great shape and continues to roll out amazing GDP growth rates. Indian Banks have almost no exposure to the sub-prime mortgage mess and their stock prices reflect that. However, the strong rupee is a concern

Indian markets will react based on how the global market react in the next coming weeks and months. Even if the global markets remains strong, I think there might still be a room for a small correction before it makes new highs. But any downside in the US (which I am expecting for a while now but just doesn’t seem to happen) could cause a major breakdown in India. We are already aware that Indian markets react strongly both ways and with such a long stretch of upside there might be a little downside coming soon.

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Out for the next two weeks

Himanshu Pandya — Sun, 11 Feb 2007 07:07:27 +0000

I am going to India for the next couple of weeks and probably won’t be able to write during this time. I will try and write something while I am there about the Indian markets.

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My new site – DailySectorWatch.com

Himanshu Pandya — Tue, 25 Jul 2006 04:22:39 +0000

I would like to announce the launch of a new section to Financial Nirvana. You can access this new site by clicking on ‘Track Sectors’ or by going to http://DailySectorWatch.com.

The new site will allow you to find stocks, track sectors and see emerging trends to help you give an overall feel of the market in a quick and easy manner. For example, you can click on the India section and see all the Indian stocks categorized by sectors and also see all the Indian stocks listed on the NYSE or the NASDAQ.Â It helps me to see see trends with the Indian stocks. The site is designed by using AJAX so its really quick and doesn’t need to load the page every time.

I am really excited about this new site and I hope everyone finds it useful. Ever since I started trading I have been thinking of such a site and now I personally use the site every morning to see the trends in various sectors.

It’s still in Beta version so let me know if you come across any bugs or if you would like me to add stocks or categories to the already growing list.

- Himanshu Pandya

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How will India’s IT biggies perform?

Rahul Rathi — Thu, 06 Jul 2006 11:43:08 +0000

Rediff: Moneycontrol.com did an interview with Karvy stock broking analyst R. Ravi. Ravi believes that all IT companies will have to pay higher taxes and the effective tax rate provisioning for the industry, which has been hovering between 10-12 per cent, will definitely go to around 16-18 per cent.

He adds that for Infosys (Nasdaq: INFY), he is expecting revenues to grow by 8.8 per cent and its profit at reported level should be around 7.1 per cent. In case of Wipro (NYSE: WIT), he expects their IT and ITES revenues to grow healthy, close to 7 per cent and for TCS, he is expecting the topline to grow by around 8.5 per cent.

Ravi added, “If you look at tier one, I am quite positive on all the stocks whether it is Infosys, TCS or Wipro“.

On HCL and Satyam (NYSE: SAY) Ravi has an out-perform rating and on Patni (NYSE: PTI), he has a buy rating. But he also thinks the tax shots will keep the investors at bay at this point of time.

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Top 20 software exporters ranked

Himanshu Pandya — Wed, 28 Jun 2006 02:47:49 +0000

Sify: National Association of Software and Service Companies (NASSCOM) has compiled a list of top 20 software exporters for the 1st quarter of 2006:

I don’t really see any surprises at the top of the list.

1. Tata Consultancy Services Ltd.
2. Infosys Technologies Ltd.
3. Wipro Technologies Ltd.
4. Satyam Computer Services Ltd.
5. HCL Technologies Ltd.
6. Patni Computer Systems Ltd.
7. i-flex solutions ltd.
8. Tech Mahindra Ltd.
9. Perot Systems TSI (I) Ltd.
10. L&T Infotech Ltd.
11. Polaris Software Lab Ltd.
12. Hexaware Technologies Ltd.
13. Mastek Ltd.
14. Mphasis BFL Ltd.
15. Siemens Information Systems Ltd.
16. Genpact
17. i-Gate Global Solutions Ltd.
18. Flextronics Software Systems Ltd.
19. NIIT Technologies Ltd.
20. Covansys India Ltd

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International Bandwidth prices likely to fall another 30%

Himanshu Pandya — Fri, 02 Jun 2006 02:35:52 +0000

Financial Express: According to TRAI (Telecom Regulatory Authority of India), there is some scope for further reduction in the bandwidth prices in India. According to Financial Express, “Experts say the international leased line (bandwidth) prices in India will witness more competition and see fall by 30 per cent depending upon capacities”

These is great news for pretty much all the Indian IT companies. I know Sify spends an enormous amount of money on bandwidth. This is overall good news for corporations and consumers.

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Companies that make up the BSE SENSEX

Himanshu Pandya — Tue, 23 May 2006 21:34:14 +0000

A lot of people have lately been asking me what companies make up the BSE SENSEX. There are a total of 30 Indian companies that make up the SENSEX. I have put the symbol next to the companies that are listed in the US and trade on either NYSE or NASDAQ.

(In alphabetical order)

1. Associated Cement Companys Ltd.
2. Bajaj Auto Ltd.
3. Bharat Heavy Electricals Ltd.
4. Bharti Tele Ventures Ltd.
5. Cipla Ltd.
6. Dr Reddy’s Laboratories Ltd. (NYSE: RDY)
7. Grasim Industries Ltd.
8. Gujarat Ambuja Cements Ltd.
9. HDFC
10. HDFC Bank Ltd. (NYSE: HDB)
11. Hero Honda Motors Ltd.
12. Hindalco Industries Ltd.
13. Hindustan Lever Ltd.
14. ICICI Bank Ltd. (NYSE: IBN)
15. Infosys Technologies Ltd. (NASDAQ: INFY)
16. ITC Ltd.
17. Larsen & Toubro
18. Maruti Udyog Ltd.
19. National Thermal Power Corp. Ltd.
20. ONGC Ltd.
21. Ranbaxy Laboratories Ltd.
22. Reliance Energy Ltd.
23. Reliance Industries Ltd.
24. Satyam Computer Services Ltd. (NYSE: SAY)
25. State Bank of India
26. Tata Consultancy Services Limited
27. Tata Motors Ltd. (NYSE: TTM)
28. Tata Power Co. Ltd.
29. Tata Steel Ltd.
30. Wipro Ltd. (NYSE: WIT)

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Indian Stocks recover nicely on Friday

Himanshu Pandya — Sat, 29 Apr 2006 20:02:40 +0000

U.S. listed Indian stocks recovered nicely on friday as they recovered most of the losses they suffered on thursday. Videsh Sanchar Nigam Limited (NYSE: VSL) was the only stock that closed the session in Red.

Following are stock I am going to be keeping a close eye on so that I can buy on any downside:

1. ICICI Bank (NYSE: IBN) and HDFC Bank Ltd. (NYSE: HDB) – I love the Indian Banks.
2. Sify Ltd. (NASDAQ: SIFY) – The recent profit didn’t impress investors but I like this stock long term. See my detailed article on Sify here
3. Tata Motors Ltd. (NYSE: TTM) – Auto stock from India has seen tremendous growth in exports and its local market.

Full Disclosure: I own shares of Sify Ltd. (NASDAQ: SIFY)

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Big Sell-off in Indian Stocks today

Himanshu Pandya — Fri, 28 Apr 2006 01:12:54 +0000

Not a very good day for Indian stocks as every single Indian Stock listed in the United States was down.

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Pune all set to become India’s first Wi-Fi/Wimax city

Himanshu Pandya — Mon, 27 Mar 2006 05:08:19 +0000

Intel Corp. will help Pune become India’s first Wi-Fi/Wimax city. According to a news story in ZDNet, the project termed, “Unwiring Pune”, will offer citizens internet access from anywhere in the city. Pune is also known to have the highest Internet user base in India and by offering wireless broadband it will enable its citizens flexibility by enabling Internet access from anywhere in the city.

Intel Corp (Nasdaq: INTC) is betting big on WiMax. It’s all set to release it first Wimax chip Rosedale which will be integrated in notebook computers starting later this year. Intel Corp. also has an agreement with WiMax equipment maker Alvarion Ltd. (Nasdaq: ALVR). Alvarion Ltd., based in Israel, has been the equipment provider of choice for Intel in a number of tests.

India could be a huge market for WiMax with its lack of infrastructure limiting broadband penetration in the country. Intel Corp. which has seen its share of struggles lately is clearly betting on WiMax to provide some growth in the future. Intel-India-WiMax could be a good combination for all the parties involved in the near future.

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