Foreign Markets Question
@Creezy asked about Mexican stocks - any interesting investing ideas out of India?
Answers
2030 points
MNSL answered 5 months ago …
I think India as a lot of potential in the long run. There will be excellent investment opportunities in next 05 years.
Stocks to Watch:
1. Reliance Energy
2. Bajaj Auto -
3. Canfin Homes
4. Bharti Airtel
5. Tech Mahindra .
6. Bank of India
However right now we must not rush to buy any stock for higher price. We can buy good companies on weakness with long term view. It is better to do research to identify winners of tomorrow. It is better to pick small stocks with long term potential to get above average return. In India, Small caps' price to earning ratio has fallen to 12.72 at present. At these valuations, these companies are attractive. We should follow value masters now. Please note that I do not have any shares in the above companies.
We must not forget markets which stretched P/E beyond sustainable levels are coming down now. Markets with low P/E are holding and actually some markets are going up specially frontier markets. When markets come down there are plenty of opportunities for intelligent investors.
2270 points
Oldman answered 5 months ago …
You could also add TATA motors (or any of the parts of the conglomerate, for instance, the steel and energy-infrastructure business), but trying to get the info/financials on them from U.S. sources is verrry hard. If you can - go to BONY.ADR.COM and sort the India ADR's.
Read more from Oldman flag as abuse great answer
1127 points
sundarkambam answered 5 months ago …
1. Reliance Industries
a. Very well Politically connected under any Government.
b. Track record of generating wealth to the shareholders
c. A Fortune 500 company and India's leading private sector Player.
2. ICICI Bank
a. India's largest Private sector Bank
b. An excellent management team
3. TCS
a. India's biggest software company
b. An excellent Management team
4. Airtel
a. India's largest private mobile player
These companies will generate immense wealth to the shareholders in years to come and investors have been a happy lot with their past performance also.
There are many other excellent companies apart from the above.
108 points
Shor answered 5 months ago …
When dealing with countries that have volatile economies, I prefer ETFs or outright funds. I own shares in ETIGX (Eaton Vance Greater India Fund) and have done quite well with it. Given the current market climate, where the Mubai index has been weak, I would be hesitant to invest at the current time. I would wait until the Indian market stabilized at what could be perceived of as a area of support.
Read more from Shor flag as abuse great answer
148 points
Prudent answered 5 months ago …
Best way to profit from a growing economy like India , Mexico is to invest in ETF or ADR of power, financial institutions , Telecom and infrastructure based companies.
Since India sensex is going through a major correction its prudent to wait and make investment when it reaches the bottom before investing. Its an excellent long term strategy to profit from growing economies.
141 points
gap answered 4 months ago …
Jim Rogers,the Commodity Guru recently appeared on CNN and said India has no Future...He may have a Visa Problem next time around ! Don't worry Jim,Indian Hospitality is second to none. India has had a glorious past,has an invigorating present and will have an exciting future..if you're not invested in India for the coming decades,might as well switch to another planet
There will be volatility and rangebound movements in the short term on account of Inflation,Interest and Oil price surges and an expected deceleration in growth of corporate earnings...also the last three to four years the Sensex(The Bombay Stock Exchange Sensitive Index) had surged from under 6000 to over 21000 discounting the Sensex EPS by over 22 times as World Investors poured billions into India..The Sensex is now 17000,around 17 times forward EPS..It's not bargain time yet like it was in late 2001 and I expect some more reaction as India is not yet adequately decoupled from USA and I believe USA still has a lot of pain to unwind
Yet Investing in Indian Core Scrips like Reliance Industries (Rs 2600,Oil & Gas ,Petrochemicals,Retailing) and Larsen & Toubro (Rs 2900,Engineering Giant and an Infrastructure Play) will be a wise Investment even at these prices as the years unfold.There are several other low cap and mid cap ideas too that would capture the imagination of more aggressive investors
As far as Jim Rogers is concerned, when he was in India and at a day long seminar devoted to him he was asked a question from the audience as to any regrets?...one would have thought it would have involved missing some investment opportunity...It was not really amusing when he answered he regretted marrying his first wife...he would not have married her if he knew how she really was !...he wasn't even flippant.He believes the US Dollar is on a longterm downtrend and even his young daughter (from his second wife) does not have a dollar account!
Jim is so besotted with Investment in China that he can easily assume a propaganda role for them..maybe he is! Hey Jim ! relook at India again..sure you missed something..you missed the run from 6000 to 21000 already...don't miss the next one to 22000 from the current 17000 inside two years...Oh dont worry if it first reacts 20% to 13000 or 14000 from here.Invest some more then.You can't ignore a country of 1.2 billion people and a sustainable GDP growth rate in excess of 7.5% per annum..India notched 9% recent qtr..but despite expected slow down the rate should stay over 7.5% pa
102 points
tushar answered 2 months ago …
Another aspect to Indian Investing is the "domestic story". India needs more infrastructure spending, more investments in roads, railways, bridges and there are some companies which will benefit from the local boom. Larsen and Toubro : http://www.stockezy.com/stocks/quote/?q=500510.BO
and Jaiprakash Associates:http://www.stockezy.com/stocks/quote/?q=532532.BO
are companies which are huge in the roads, bridges building. Another important aspect to the infrastructure story is that the government is more open to Foriegn Direct Investment in this sectors and also red-tape is cut to bare minimum to allow fast completion of projects.
The procedure is BOT: Build Operate Transfer where the developing company makes money by Toll hence giving it more incentive to complete the project on time.
To learn more about indian stocks, and detail stock quotes for indian companies you can visit : www.stockezy.com
2030 points
MNSL answered 2 months ago …
Gap has given some good points about India.
Different top investors have different opinion on markets. Some investors prefer China over other markets. Some Investors have specialized in frontier markets or emerging markets. There are global investors as well. Some intelligent investors have an ability to make returns in any market. Such as futures market, option market, real estate market, stock market and commodity market through out the world.
Some investors always try to promote their investment destination and their investment products. They have invested their money in those countries 7 years ago. So we have to be very careful. We must invest only when we see correct value and potential in any country and any market.
In my experience I can tell you if you are clever enough you can make money in any market and any country. Top investors know how to invest and how to make money even in an African country or small Asian or South American country. Some top investors have made returns over 100% to 500% in some small frontier markets for the last five years by investing in stocks. They are also very clever in selecting and switching stocks time to time to get maximum returns.
In short you can find investment opportunity almost all over the world. Even now we can find outstanding, neglected and steeply discounted companies through out the world.
I think we will see slower growth together with slowdown in property market and stocks market in China very soon. As a result of this commodity market also will come down.
Once this happen value masters will enter Chinease stocks market gradually.
