Can India truly deliver on the promise of the best demographic and consumer growth story in the world? India is the BRIC country without any other members. India is delivering “China like” growth and has been one the best performing major EMs in the last 12 months (+36%).
Recall walking through the ubiquitous chain drug store near you to see the cologne shelves where the knock-off brands advertised “If you like Paco Rabanne, you’ll love ‘Paul Raven’ cologne.” Basically it smells the same but is a lot cheaper.
Emerging markets have been one the best places for market participants to find investment opportunities in equities, especially in the retail and banking sectors. In particular in South Africa (EZA, quote), firms in these industries have historically been bullet proof; however, recently, shares in these firms have been adversely affected by social unrest in the country.
Auto manufactures typically run with the herd as auto manufacturers attempt provide consumer what they want or what they didn’t know they wanted. When one auto manufacturer raises prices the herd follows. Not so for Tata Motors (TTM, quote)where many auto manufacturers have raised prices or currently thinking about raising prices Tata motors is setting themselves apart by re-launching its compact car Indica eV2 with a new updated fresh look while lowering the price by 23,000 Rs.
While many other Indian equities have a large, concentrated exposure to either the slowing developing countries or their own domestic economy (INDY, quote), Tata Motors (TTM, quote) offers investors access to the Indian economy without the problems plaguing other stocks thanks to its global diversification.