Wednesday, June 14, 2006

Indian Stocks are a BUY Now; The Fundamentals are in Place!

I write this blog from India, where I have come to spend my traditional winter time (home base is South America since the last few years).

This country is firing on all cylinders. I got the Internet and telephone fixed within 24 hours. They Phone companies guarantee installation of a new phone line within 2 hours. An existing line will be repaired within 24 hours; if not, they will credit you back the 1 day charges on your telephone bill. The country's aim is to move towards Re 1 per minute cell to cell calls throughout India; this translates into US$0.02 per minute. Economies of scale work wonders in large countries.

The problems with this country are well known-roads and highways still are pathetic. Transportation in big cities like Mumbai is a nightmare. Infrastructure is, in general, in bad shape. The changes in infrastructure doesn't happen overnight; it takes decades to build a good highway system, train system, subway system, for example.

But overall, the progress in this country is impressive. Indian stocks have had a bit of a sell-off lately; giving the sideline buyers a good opportunity to get in at great prices. You can buy blue chips like IBN, HDB, (banks) on NYSE. Or buy some volatile stuff like REDF and SIFY. Or if you are like me-buy them all, ensuring that you will participate in the rise of the domestic Indian market (economy).

The latest economic figures showed a growth of almost 9.5% q over q. That is impressive for a country this size.

Indian Markets remain a steady bull for years and possibly decades to come.

Sanjay John G.


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