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)

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The companies that targeted the local Indian consumers and the local Indian market emerged as the clear winners in 2007. 

Telecom and Banks led the way.  However, technology companies that depend on western markets such as United Sates under-performed during the year. 

The two Indian Internet plays, Sify (SIFY) and Rediff (REDF), are looking more like Lycos and Excite.  These two stocks are showing no signs of life and I am not sure 2008 will be any better.  Internet in India still hasn’t emerged as people expected it to.  You can’t go just by numbers and growth figures. Broadband is still a dream for most consumers in India.  I am planning to write about this topic soon so I will leave the bulk of my thoughts for that article. 

Tata Motors (TTM) and Dr. Reddy’s (RDY) basically went no where but still look promising for 2008 and beyond.  Tata is still waiting on the Jaguar and Land Rover decision and the Rs. 1 Lakh ($2500) car is supposed to be launched in 2008. 

The newly listed Sterlite (SLT) has almost doubled since it’s IPO.

Now the best way to get exposure to Indian Market was via an Indian ETF or CEF’s.  INP led the way with a 86% return in 2007. 

Unfortunately, lots of great Indian companies are not listed in the United States and the best way to play the Indian market might as well be INP.  However, with Sensex near an all-time high you want to time your entry well. 

With the Indian economy booming and as the ever increasing middle class continues to see their purchasing power increase, investing theme for 2008 is pretty clear.  Invest in Indian companies that target the local market rather then ones that depend on western markets. 

2008: The year ahead

Find good entry points for:

• HDFC Bank (HDB)
• ICICI Bank (HDB)
• INP (ETF)
• Sterlite (SLT)

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Indian Stocks Weekly and YTD Price Change – Week ending December 07, 2007: 

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Indian Stocks Weekly and YTD Price Change – Week ending November 30, 2007: 

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Indian Stocks Weekly and YTD Price Change – Week ending November 23, 2007:

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Indian Stocks Weekly and YTD Price Change – Week ending November 16, 2007:

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Indian Stocks Weekly and YTD Price Change – Week ending November 09, 2007:

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Indian Stocks Weekly and YTD Price Change – Week ending November 02, 2007:

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Just look at some of the gains this week. 

• VSL up 28%
• HDFC Bank (HDB) up 19%
• Sterlite (SLT) up 20%
• ICICI Bank (IBN) up 21%
• INP, IIF and IFN all up around 12%

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Indian Stocks Weekly and YTD Price gains – Week ending October 26, 2007:

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This is just a healthy decline and will hopefully give us all an opportunity for the long term.   

Weekly and YTD Price Change - Week ending October 19, 2007

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