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India—An 'Excellent' Growth Story: Stock Picker

Tuesday, 1 Mar 2011 | 11:36 AM ET

While the Indian stock market lost about 14 percent this year, the country is still an “excellent” growth story, said Ron Shah, managing partner at Jina Ventures.

India: Worst Market in World?
India is underperforming most emerging and developed markets, losing about 14 percent this year, even though Indian stocks appear to be making a comeback of late, with Tim Seymour, emergingmoney.com, and Ron Shah, Gina Ventures founder.

“First of all, there’s no social unrest issue—this is the largest democracy in the world and the fundamentals are completely in place,” Shah told CNBC.

India’s economy grew 8.6 percent in 2010 and Shah told investors to expect more this year.

“Earnings growth—that alone makes India an excellent buying opportunity,” he said. “It’s definitely over-corrected and it’s got a long-way to go on the upside.”

Shah said investors should stick to single trades and avoid indexes and ETFs.

“There are certain sectors like outsourcing, which you want to stay away from them because they’re getting hit hard on taxes,” he advised. “But the autos are a great play and banks are seeing a surge.”

Shah’s India Trades:

“Short” Wipro and Infosys

“Long” HDFC Bank and Tata Motors

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Scorecard—What He Said:

  • Shah's Previous Appearance on CNBC (Feb. 17, 2011)

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More Market Intelligence:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

No immediate information was available for Shah or his firm.

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Disclaimer

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HDFC Bank Ltd
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