Wednesday, February 22, 2006

What Other Good Indian Stocks Can I Buy, Besides REDF and SIFY?

REDF and SIFY are proxies to the Indian Internet sector. There are many other options for people looking to invest in India in general.

Infosys, Nasdaq ticker INFY, is the top dog for consulting in India, and one of the best of the world companies. The company market cap is $38 Billion. It is a steady performer, and is the reason why IBM et. al. are moving their consulting operations to India, they have to compete with the extremely smart guys at INFY and they just can't afford to do that on the developed world salaries.

Dr. Reddy's, RDY on NYSE, is a major generic drug manufacturing company. It is now looking into developing it's own pipeline of drugs, moving away from generics (low margin), to higher margin patentable drugs. The Drug sector in India is very small, and should rise considerably in the years to come.

Then there are two closed end Mutual funds which invest directly in India.

The Morgan Stanley India Fund, ticker IIF , is a good way to play the Indian domestic market. Backed by Morgan Stanley, you know that you have the power of one of the most venerable names in the Banking Industry behind you. See more info here.

IFN is the India Fund, run by a smaller shop in New York, Advantage Advisers Inc. See more info here.

Both IFN and IIF have given significant dividend distributions in 2005.

Sanjay John G.

PS If you are reading this blog from the US and want to learn about US Real Estate Investing, especially using Real Estate Investment Trust (REIT) Stocks, check out my blog:
http://fonisol.com/blogs/reit-stocks/reit-stocks.htm


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5 Comments:

Der Grosswildjaeger said...

This post has been removed by the author.

1:48 PM  
Der Grosswildjaeger said...

Dear Sanjay,

How do you see the chances of WIT and SAY. Also two NASDAQ listed indian companies related to the computer and programming business.

What do you think of an investment in these stocks?

The "Grosswildjaeger"

2:04 PM  
Sanjay John G. said...

WIT are SAY are great companies. They have been around for a while, and I think will be steady growers for a long time, barring unforeseen troubles like management execution problems, etc.

The margins on consulting will erode further as more competitors enter the fray. But for now, they are the biggest and the best, alongwith INFY.

Sanjay John G.

2:08 PM  
pchander100 said...

Hi Sanjay,

There is another U.S. based fund that invests in India - Eaton Vance Greater India Fund, ETGIX.

I am from India, live in U.S. I want to open a Indian broker account and trade funds in Indian Rupee, say an Indian equivalent of Scottrade. How do I go about it, Thanks.

4:16 AM  
Sanjay John G. said...

Hi,

ICICI Bank and HDFC Bank (reputable banks in India) have branches in North America. They might be able to structure an account for you. But watch out for the high fees.

Getting money into and out of India can be complicated, all the Tax and Bureaucratic issues involved. I think ADRs are the best way for someone in your shoes.


Sanjay

5:15 AM  

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