We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Market Edge Highlights: ICICI Bank, HDFC Bank, iShares India ETF, WisdomTree India Earnings ETF and VanEck India Small-Cap ETF
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 14, 2017 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/275561/indian-stocks-a-bubble-or-a-buying-opportunity)
Indian Stocks: Bubble or Buying Opportunity?
Welcome to Episode #98 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Neena Mishra, Zacks Director of ETF Research and Editor of Zacks Income Investor, to discuss what’s going on in India’s economy now that Prime Minister Modi has pushed through some key economic reforms.
The economy has slowed the last two quarters, but that is believed to be a temporary slowing and is expected to heat up. GDP is forecast to grow at 6.8% this year and 7.2% next year.
Investors Pile In
Foreign and domestic money has been flowing into Indian stocks for several years. ETF money flows over the past 3 years show that India was the top choice for investors in emerging market companies.
In the first six months of 2016, foreign institutions bought $8.4 billion in stock up from $2.9 billion in the first six months of 2016.
Additionally, Indian investors have also jumped into stocks thanks to the Systematic Investment Plans (SIPs) that allow you to invest in mutual funds every month. Assets under management in mutual funds have doubled since 2014.
Too Hot to Handle?
Indian stocks are hot. In 2017, the Sensex is up 20% year-to-date with the Nifty Index up 23%.
The small caps are even hotter, up over 40%.
As Neena discusses, Indian stocks are discussed in casual conversation and it’s not unusual to hear stock tips from family and friends.
How Can You Invest in Indian Stocks?
There are some Indian ADRs traded on the US exchanges but they are mostly big banks. Two of the most prominent are:
1. ICICI Bank (NYSE:(IBN - Free Report) – Free Report), India’s largest private sector bank. Earnings are expected to rise 15% this year and another 33% in fiscal 2019. Investors should be sure to dig into asset quality and non-performing loans when considering emerging market banks.
2. HDFC Bank Limited (NYSE:(HDB - Free Report) – Free Report) is also one of the largest private sector banks. It’s expected to grow earnings by 28% in fiscal 2018 and 24% in fiscal 2019. But it’s trading with a forward P/E of 30 now.
Buying one big Indian bank for a portfolio is rather limited. If you want a basket of stocks, the ETFs are the way to go.
Indian ETFs to Consider
1. iShares India ETF (BATS:(INDA - Free Report) – Free Report) is one of the most popular Indian ETFs. It invests in large cap stocks. You would get both ICICI and HDFC if you bought it. Financials make up 25% of the total portfolio. It has risen 27% in 2017.
2. WisdomTree India Earnings ETF (NYSEARCA:(EPI - Free Report) – Free Report) doesn’t just buy the large, mids or small caps. It looks at earnings and profits of the companies. Imagine that? Shares are up 32% year-to-date.
3. VanEck India Small-Cap ETF (NYSEARCA: – Free Report) invests in small cap Indian stocks along with some microcaps. It’s up 46% year-to-date.
There are also a consumer focused and infrastructure ETFs for those who want even a more specialized collection of stocks in certain industries.
With the big move in the stocks, the record highs, the money pouring in and the increased speculation, should you still be jumping into Indian stocks?
Or wait for some kind of sell off?
Tune into this week’s podcast to find out.
Want to Know How to Invest in India’s Growth Through US Companies?
Neena and Tracey did a podcast in February 2017 discussing which US companies were positioned to cash in on Modi’s economic reforms and opening of the Indian economy to outside investors.
The battle is still raging with Alibaba, Amazon and even Apple making a play for the Indian consumer.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Market Edge Highlights: ICICI Bank, HDFC Bank, iShares India ETF, WisdomTree India Earnings ETF and VanEck India Small-Cap ETF
For Immediate Release
Chicago, IL – September 14, 2017 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/275561/indian-stocks-a-bubble-or-a-buying-opportunity)
Indian Stocks: Bubble or Buying Opportunity?
Welcome to Episode #98 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Neena Mishra, Zacks Director of ETF Research and Editor of Zacks Income Investor, to discuss what’s going on in India’s economy now that Prime Minister Modi has pushed through some key economic reforms.
The economy has slowed the last two quarters, but that is believed to be a temporary slowing and is expected to heat up. GDP is forecast to grow at 6.8% this year and 7.2% next year.
Investors Pile In
Foreign and domestic money has been flowing into Indian stocks for several years. ETF money flows over the past 3 years show that India was the top choice for investors in emerging market companies.
In the first six months of 2016, foreign institutions bought $8.4 billion in stock up from $2.9 billion in the first six months of 2016.
Additionally, Indian investors have also jumped into stocks thanks to the Systematic Investment Plans (SIPs) that allow you to invest in mutual funds every month. Assets under management in mutual funds have doubled since 2014.
Too Hot to Handle?
Indian stocks are hot. In 2017, the Sensex is up 20% year-to-date with the Nifty Index up 23%.
The small caps are even hotter, up over 40%.
As Neena discusses, Indian stocks are discussed in casual conversation and it’s not unusual to hear stock tips from family and friends.
How Can You Invest in Indian Stocks?
There are some Indian ADRs traded on the US exchanges but they are mostly big banks. Two of the most prominent are:
1. ICICI Bank (NYSE:(IBN - Free Report) – Free Report), India’s largest private sector bank. Earnings are expected to rise 15% this year and another 33% in fiscal 2019. Investors should be sure to dig into asset quality and non-performing loans when considering emerging market banks.
2. HDFC Bank Limited (NYSE:(HDB - Free Report) – Free Report) is also one of the largest private sector banks. It’s expected to grow earnings by 28% in fiscal 2018 and 24% in fiscal 2019. But it’s trading with a forward P/E of 30 now.
Buying one big Indian bank for a portfolio is rather limited. If you want a basket of stocks, the ETFs are the way to go.
Indian ETFs to Consider
1. iShares India ETF (BATS:(INDA - Free Report) – Free Report) is one of the most popular Indian ETFs. It invests in large cap stocks. You would get both ICICI and HDFC if you bought it. Financials make up 25% of the total portfolio. It has risen 27% in 2017.
2. WisdomTree India Earnings ETF (NYSEARCA:(EPI - Free Report) – Free Report) doesn’t just buy the large, mids or small caps. It looks at earnings and profits of the companies. Imagine that? Shares are up 32% year-to-date.
3. VanEck India Small-Cap ETF (NYSEARCA: – Free Report) invests in small cap Indian stocks along with some microcaps. It’s up 46% year-to-date.
There are also a consumer focused and infrastructure ETFs for those who want even a more specialized collection of stocks in certain industries.
With the big move in the stocks, the record highs, the money pouring in and the increased speculation, should you still be jumping into Indian stocks?
Or wait for some kind of sell off?
Tune into this week’s podcast to find out.
Want to Know How to Invest in India’s Growth Through US Companies?
Neena and Tracey did a podcast in February 2017 discussing which US companies were positioned to cash in on Modi’s economic reforms and opening of the Indian economy to outside investors.
The battle is still raging with Alibaba, Amazon and even Apple making a play for the Indian consumer.
Our discussion is still timely.
Become one of Dave’s minions. Join the Zacks Live Trader community today. Click here for a free 14-day trial >>>
Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast. You can also catch her on Twitter at @TraceyRyniec.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Get the full Report on IBN - FREE
Get the full Report on HDB - FREE
Get the full Report on INDA - FREE
Get the full Report on EPI - FREE
Get the full Report on SCIF - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.