Tuesday, September 05, 2006

REDF and SIFY follow the US Internet stocks

REDF and SIFY often trade in good correlation with the US Internet stocks. Part of it is because sectors do trade together worldwide; another part is that the major investors in these stocks are US based and often are affected by the moves at home (in the US)-they tend to dump their Internet holdings of India together with their Internet holdings of the US.

The markets are fairly different. US market is growing but closer to the to of the "S" curve of typical growth industries [growth slow first, then rapid growth, then slow again, as the industry matures)]-the Indian internet is at the bottom of the "S" wanting to take off. A lot of money is the Indian Internet sector, and if Rediff can capitalize on it's email services and SIFY on its brand, both are long terms winners for the stockholders.

Sanjay John G.

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