India—An 'Excellent' Growth Story: Stock Picker
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.
“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
Scorecard—What He Said:
- Shah's Previous Appearance on CNBC (Feb. 17, 2011)
More Market Intelligence:
- Markets to End Year Higher—Buy Dips: Stock Pickers
- Cramer: Stick to Firms That Can Pass on Inflation
- New Fund Offerings Flood China as Redemptions Surge
CNBC Data Pages:
No immediate information was available for Shah or his firm.