Thursday, June 01, 2006

Update of Indian Stocks

In the article, we looked at the investment options in the Indian market and the prices of various stocks listed in the U.S market. The BSE Sensex Index has declined 25% from its heights of 12670=00. This still probably doesnt reflect the full correction in the Indian stock market. and My expectation is for the stock to move sideways or downwards in the next few months.

We will take a quick look at the Indian stocks traded in the U.S and see where they are now compared to the time when the previous article was written.

INFY trading at $71.00 compared to $78.
SAY is trading at $32.00 compared to $44.
SIFY is trading at $10.00 compared to $14.
WIT is currently trading at $11.91 compared to $15.
HDB is steady at around $53.
IBN is also steady at around $27.
VSL has declined to about $17 from $22.
MTE is trading around the same value of $8.
RDY has declined from $31 to around $27.
TTM has declined to around $17 from around $21.
PTI is around 15.5o compared to around $20.45.
MT has also declined by about 10% from its value when the previous article was written.
REDF is currently at $16 compared to $22 when the previous article was written.

The interesting trend in this group of stocks is that value is doing better than growth during this market downturn. The tech stocks have declined between 5-40% where as the banking stocks are holding their own with slight declines. This has been the trend in the U.S market as well this year thus far where small cap value and large cap value have trounced their growth counterparts convincingly. However, there is good news for Indian outsourcing companies - the India Rupee has declined against the U.S dollar by about 5% from last year providing them a buffer against rising employee, benefit costs. An appreciation in the rupee against the U.S dollar can cause more problems for the Indian companies.

It will be interesting to watch how the stock market performs in the next few months. I am betting that it will move sideways or down as the twin fears of housing slowdown and rising inflation keep the U.S stocks in check. Predicting the stock market is a fools game and anything can happen in the next few months. It is healthy for the market to have a correction to put a damper on runaway speculation. I am an investor and believer in the emerging markets. I will be observing the emerging markets closely and writing about them from time to time in this space.

1 comment:

Anonymous said...

Appreciate the work your doing...