Tuesday, March 14, 2006

Indian Stocks on Fire

CNN Money has an interesting stuff on the rise of Indian IT stocks titled “Searching for India's Google and Yahoo!”

Investors trying to find the next hot Internet stock aren't looking for companies based in Silicon Valley...or anywhere else in America for that matter. They're looking to India.

While many large U.S. Internet stocks struggle this year, shares of Sify (Research), a Chennai-based Internet content and networking firm, are up nearly 20 percent so far in 2006. Shares of Rediff.com (Research), a Mumbai-based portal, have surged 35 percent.

George Mihalos, an analyst with Gilford Securities, said that since India has only about 40 million Internet users among a total population of 1.1 billion people, it's easy to see why investors are excited, especially since Rediff and Sify are the only Indian Internet stocks that trade in the United States.
On reasons why Indian stocks are hot as compared to China .
"The opportunity in India is drawing parallels to the Chinese market. The Indian market is probably about five years behind China," said Mihalos. "But scarcity value is playing a role here. There are only two companies to buy

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