Bullish on India

I am extremely positive on India. The Indian stock market is on the run and is surfing new territory recently. It is still going strong and, I believe, poised to go a lot further. Because India is growing at about 8-9% in GDP for the past few years and is predicted to grow as much as 10% in 2006. Think about China in the early 1990s. The BSE (Bombay Stock Exchange) Sensex closed at 9290 yesterday. I feel it could skyrocket above 15000 by the end of this decade. That would mean about 10% gain for the next 4 years, considering a close of about 9300 for the year.

I myself made quite a few bucks investing in Indian ADRs in 2005. Here is a list of some of the Indian plays that I feel might be quite rewarding.

HDB - HDFC Bank
IBN - ICICI Bank
INFY - Infosys
SAY - Satyam Computer Services
PTI - Patni Computer Systems
REDF - Rediff.com
SIFY - Satyam Infoway
RDY - Dr. Reddy's Labs
CTSH - Cognizant Technology Solutions

If you are scared to bank on a single stock you can buy a fund that invests in a bunch of Indian blue chip stocks.

IIF - Morgan Stanley India Investment Fund
IFN - India Fund, Inc

Although I am very bullish, it would not be a great idea to jump in them blindly. One can wait for a midterm correction to board the bus.

Note: Please do your research before buying. Disclaimer.