Like India, Unlike China…
Unlike the South East Asian economies that largely depend on exports and international tourism for growth, unlike the Middle East that is largely dependent on oil to fuel their economies, unlike the South American economies that rely on natural resources and exports to US, unlike China where growth is not an issue but transparency is, India offers a much wider theme for investors that is leveraged on its strong domestic populace and growing relevance in the global arena.
While this is not to say that India is insulated from global factors, in our view, the economy is likely to be relatively less affected by what happens in the US. In our view, there are three broader themes, which an investor could base his/her investment decision in Indian equities. We have listed the name of companies under each of the theme (the list is aimed at highlighting key players in the sector and is not aimed at recommending the stock to buy/sell).
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Additional Readings:
The Tata Steel bid for Corus:
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An acquisition will be EPS-accretive
Off-Topic Readings:
Parting Thought:
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A pin lies in wait for every bubble and when the two eventually meet, a new wave of investors learns some very old lessons. - Warren Buffett
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