SENSEX Roaul Pal

Mr Pal mentioned that investing in SENSEX was a good idea. According to his forecasting report India Stack and Mobile technology are playing a big part in his reasoning. Does anyone know which companies are considered a value stock for this particular market? Which ones are leading the way for this infrastructure breakthrough?

http://www.mauldineconomics.com/outsidethebox/raoul-pal-paying-attention

Comments

  • I don't other than what Mr. Pal mentioned, which were banks and telco, I was thinking about either INDY or INDA ETFs. The INDY tracks the Nifty index, which is the top 50 Indian equities a INDA tracks the MSCI index. I took at look at both and their very similar. INDA has a much larger market cap, 4.8B vs 826 million, and it also has a lower expense ratio, .71% vs .94% with a higher dividend rate as well. So based on that, I'd say INDA is the way to go if you want exposure to India's emerging markets. I know the question was "which" companies, but my interpretation of the article and the podcast was India as a whole is a buy, so I'd argue an ETF is the best way to get diversified exposure without getting crushed by fees.
  • Thanks istrong. That makes sense and goes along with how I interpreted the article as well. I am intrigued to see how this develops in the future
  • Since I am residing in India. I have found a cheap broker who charges 0.01% on buying equities (only when you take the delivery) and there no long term capital gains tax ( more than 1 year). So I guess buying good companies which are low valued is a good strategy to go. And keep in mind one thing that in India today we banks are dealing with big NPA( Non-performing assets) problems. For which they are asked to set aside large funds, which is going to effect credit growth and profit margins of the Banks. So, just a caution on buying the market index ETF as it consists of some large Banks facing the problem and some large corporations having those NPA's. So my advice is in the short term markets can underperform. But in 2-3 years you can get steady returns as the clouds clear.
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