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The BRIC Cheer: Stimulus Coming To India (EPI, PIN, IFN, IIF, INFY, TTM, IBN, SLT)

Administrator — Wed, 18 Jan 2012 16:22:37 +0000

India could finally be starting to turn itself around. Now that the nation is no longer so ultra-concerned about inflation tearing apart its population, the country is aiming for some stimulus measures. The FT has reported that the nation is launching a $35 billion public sector investment program. The aim is to boost infrastructure spending as well as to purchase energy even from foreign firms. Of the $35 billion, some $7 billion was earmarked for energy in coal, natural gas, and oil.

As far as how this is impacting closed-end funds and ETFs, the moves are below and the 52-week ranges have been offered so that investors can see just how much pain has been there in the last year:

WisdomTree India Earnings (NYSE: EPI) is up 0.9% at $17.93 and the 52-week trading range is $15.44 to $25.58.

PowerShares India (NYSE: PIN) is up 0.8% at $18.30 and the 52-week range is $15.96 to $24.59.

India Fund, Inc. (NYSE: IFN) is up 0.4% at $21.46 and the 52-week trading range is $18.61 to $33.99.

Morgan Stanley India Investment Fund, Inc. (NYSE: IIF) is up 0.7% at $15.75 and the 52-week trading range is $13.59 to $24.57.

These are no ETFs nor closed-end funds but there are some key ARDs to watch:

Infosys Limited (NASDAQ: INFY) was recently butchered on its earnings and revenue warnings and shares are only up marginally at $52.00 versus a 52-week range of $46.12 to $74.52.

Tata Motors Ltd. (NYSE: TTM) is up 2.2% at $21.18 versus a 52-week range of $14.33 to $29.06.

ICICI Bank Limited (NYSE: IBN) is up only 0.25% at $30.95 against a 52-week range of $24.14 to $51.50.

Sterlite Industries (India) Limited (NYSE: SLT), which operates as a non-ferrous metals and mining company, is up 1% at $8.67 versus a 52-week range of $6.64 to $16.60.

$35 billion might not sound like much when you consider the U.S.-sized stimulus packages and when you consider that India has almost 1.2 billion people versus about 310 million in the U.S. The 2010 GDP on a purchasing power parity was put at about $4.06 trillion and that comes to only about $3,500 in GDP per capita.

$35 billion matters, even if it is going to take more to jumpstart the economy after months and months of tightening and restive monetary measures as the nation fought inflation at the expense of growth.

JON C. OGG

Filed under: ADR, Economy, Emerging Markets, ETF, Infrastructure, International Markets, Mutual Funds Tagged: EPI, IBN, IFN, IIF, INFY, PIN, SLT, TTM

Special Report: Chart Deaths of BRIC & Emerging Markets (EEM, VWO, EWZ, BRF, ECH, CH, RSX, TRF, CEE, EPI, PIN, IFN, IIF, FXI, GXC, TAO, HAO, CHN, TDF)

Administrator — Mon, 03 Oct 2011 22:46:14 +0000

The old saying goes, “When the U.S. sneezes, the rest of the world catches a cold.” But what about when Europe gets the flu and when China and India drink the tap water from Latin America? There have been many books about the Post-American economies and about the rest of the world catching up to America’s fiscal dominance. It turns out that our leverage isn’t so bad when you consider some of the other great nations. The recession in America is still only an unofficial and debated recession, but the recession in Europe and the equivalent of a recession is heading back to the developing nations.

All you have to do is look at the exchange-traded funds and closed-end which track the emerging markets and the BRIC nations (and those surrounding the BRICs). Ugly is not quite the right description and we will explain more after showing just how bad the carnage is. Greece is no emerging market, but it is on the path to default faster than emerging markets used to default.

The ETFs for the broad emerging markets is not a good signal for their equity markets. The revolutions of early 2011 did not help, nor did the food inflation, but the economic slowing is taking a hit here left and right. iShares MSCI Emerging Markets Index (NYSE: EEM) closed down 2.1% at $34.36 and the 52-week trading range is $34.29 to $50.43 (52-week low was Monday). Vanguard Emerging Markets Stock ETF (NYSE: VWO) closed down 1.75% at $35.20 and the 52-week trading range is $35.13 to $50.92 (52-week low was Monday).

We have included the most active ETF chart on each from Stockcharts.com at the end of this report. The data on the BRICs is almost shocking…

BRAZIL

Brazil may have energy independence and the Olympics headed its way, but the implosion there has been massive. The BOVESPA lost 2.9% of its value on Monday and let’s just say that its high-flyers are now grounded due to more than just weather. It seems that minerals and forestry are not going to generate cash, just like it missed out on royalties from the term “Brazilian” in personal grooming.

iShares MSCI Brazil Index (NYSE: EWZ) closed down 2.1% at $50.89 and the 52-week trading range is $50.71 to $81.77 (52-week low was Monday). Market Vectors Brazil Small-Cap ETF (NYSE: BRF) closed down 3.15% at $37.96 and the 52-week trading range is $37.73 to $63.78 (52-week low was Monday). iShares MSCI Chile Investable Market Index (NYSE: ECH) closed down 3.8% at $51.16 and the 52-week trading range is $50.92 to $80.38 (52-week low was Monday). Aberdeen Chile Fund, Inc. (NYSE: CH) closed down 4.9% at $13.45 and the 52-week trading range is $13.37 to $26.56 (52-week low was Monday).

Filed under: ADR, Brokerage Firms, Charts, China, Commodities, Corporate Governance, Currency, Defensive Stocks, Economy, Editor's Picks, Emerging Markets, ETF, Exchange News, Index, International Markets, Most Actives, Mutual Funds, Personal Finance, Trading Alert, Value Investing Tagged: BRF, CEE, CH, CHN, ECH, EEM, EPI, EWZ, FXI, GXC, HAO, IFN, IIF, PIN, RSX, TAO, TDF, TRF, VWO

FedEx Capitalizing On Growth Trends In India (FDX, UPS, PIN, EPI, INFY)

Administrator — Wed, 03 Nov 2010 17:40:21 +0000

In its first fiscal quarter of 2011, ending June 30, 2010, India posted GDP growth of 8.8%, the country’s highest growth rate in 3 years. Manufacturing grew a whopping 12.4%, compared with 3.8% growth the previous fiscal year. The government’s finance minister estimated that full-year growth for fiscal 2011 would be 8.5%-8.75%. Only China is growing faster than India. The robust level of growth in India has not escaped the notice of FedEx Corp. (NYSE: FDX), which has announced the acquisition of a privately-held Indian logistics, distribution, and delivery firm for an undisclosed amount. The company expects the deal to close by the end of February 2011.

In its latest Form 10-Q filing, FedEx noted a jump of 10% in average daily package volume in its international domestic delivery business, which includes all but the company’s US business. That makes it impossible to tease out India’s share of that business, but the company noted that the increased package volume was particularly strong in Asia during its first fiscal quarter of 2011, which ended in August.

Competitor United Parcel Service Inc. (NYSE: UPS) also noted a 40% increase in export volume shipments in Asia during its second fiscal quarter of 2010, ending in June. For UPS, international average daily package volume grew by 24% on domestic deliveries and 14.5% on export deliveries in the quarter. Like FedEx, UPS doesn’t break out shipments by individual country.

Although FedEx sports a market cap less than half that of UPS, the two companies do about the same amount of business internationally. FedEx reported first quarter 2011 revenue from international shipments of about $2.6 billion. UPS reported second quarter 2010 revenue from international shipping of $2.77 billion. FedEx could well have stolen a march on UPS with this acquisition. It shouldn’t be a big surprise to see the positions flip once the FedEx acquisition is completed.

Interest in India and its booming economy is sure to heat up as the US and China continue to wage a clandestine currency battle. There are two ETFs comprised of Indian stocks: PowerShares India (NYSE: PIN) and Wisdom Tree India Earnings Fund (NYSE: EPI). Both funds hold more than 10% of their assets in Reliance Industries Ltd., and the next two largest holdings are Infosys Technologies Ltd. (NASDAQ: INFY) and Oil & Natural Gas Corp. Ltd., or ONGC.

Both FedEx and UPS are down slightly today, ahead of the announcement from the US Federal Reserve on another round of quantitative easing.

Paul Ausick

Filed under: ADR, Emerging Markets, International Markets, Mergers and Buy Outs, Transports Tagged: EPI, FDX, INFY, PIN, UPS

India Election Winners By ETF & Shares (PIN, EPI, IIF, IFN, INP, INFY, IBN, REDF, SAY, SLT, TTM, WIT)

247wallst — Mon, 18 May 2009 13:19:05 +0000

It is rare that you see an election have this large of an impact, but the Indian stock market surged on the new election results. The Congress Party won a decisive victory in India and this sent Indian stocks up 17% on average. The move was so large that the Bombay Stock Exchange had to close after already seeing one halt. This had a huge impact on stocks, which you can see reflected in the share prices in the high pre-market indications of the major ETF’s, closed-end funds, and active ADR’s listed below.

ETF’s and closed end fund gainers representing India are as follows:

PowerShares India (NYSE: PIN) up 15% at $17.00 at 9:07
WisdomTree India Earnings (NYSE: EPI) up 23% at $17.20 at 9:07
Morgan Stanley India Investment Fund, Inc. (NYSE: IIF) up 17% at $18.85 at 9:07
India Fund, Inc. (NYSE: IFN) up 20% at $25.93 at 9:07
iPath MSCI India Index ETN (NYSE: INP) up 23% at $48.75 at 9:08

The key Indian ADR shares are as follows:

Infosys Technologies Ltd. (NASDAQ: INFY) up 13% at $36.35 at 9:09
ICICI Bank (NYSE: IBN) up 31% at $23.39 at 9:09
Rediff.com India Ltd. (NASDAQ: REDF) up 32% at $3.30 at 9:09
Satyam Computer Services (NYSE: SAY) up 13% at $2.05 at 9:09
Sterlite Industries (NYSE: SLT) up 19% at $10.98 at 9:10
Tata Motors (NYSE: TTM) up 13% at $8.59 at 9:10
Wipro Ltd. (NYSE: WIT) up 9% at $11.65 at 9:10

This election is expected to allow the government to have a greater degree of flexibility to boost economic reform and growth. The prior communist parties had not been favorable for issues such as insurance, privatizations, and pensions.

JON C. OGG

Posted in ADR, Emerging Markets, ETF, Index, Mutual Funds, Politics, Trading Alert Tagged: EPI, IBN, IFN, IIF, INFY, INP, PIN, REDF, SAY SLT, TTM, WIT

Satyam Turns Out to be a House of Cards (SAY, INFY, WIT, PIN, EPI, IFN)

247wallst — Wed, 07 Jan 2009 06:38:53 +0000

If you are one of those who cannot stand Indian IT-outsourcing firms, you probably just got another feather in your cap. India’s Satyam Computer Services Ltd. (NYSE: SAY) is turning out to be a house of cards. Shares closed at $9.35 yesterday after many recent troubles, and that was already down two-thirds from their highs. Things are worse this morning. Much, much worse.

The company’s Chairman Raju admitted to cooking the books for the lastfew years. It seems the company had phony profits and a highly inflated balancesheet. He resigned and another director resigned. Indian officials areexamining the role of auditors and the role of directors. This is allon the heels of what was going to be one horrible mismatched merger inrecent weeks.

DSP Merrill Lynch has also withdrawn as the company’s advisor. Aboutall that can be said on the decency side here is that the company’sboard of directors is still meeting this Saturday.

The last trades early this morning are under $3.00 pershare. MarketWatch even put out a headline with the reference of theIndian-Enron.

Interestingly enough, this killed India’s overall stock market morethan it hurt IT-outsourcing competitors. Infosys Technologies Ltd.(NASDAQ: INFY) is hardly down this morning. Same goes for Wipro Ltd.(NYSE: WIT).

The Bombay SENSEX fell by 7%. You might as well expect weakness to be seen in the Powershares India (NYSE: PIN), WisdomTree India Earnings (NYSE: EPI), and the India Fund, Inc. (NYSE: IFN) for additional fallout.

Jon C. Ogg
January 7, 2009

Posted in Accounting, ADR, Earnings Warning, Emerging Markets, Law, Shareholder Issues Tagged: EPI, IFN, INFY, PIN, SAY, WIT

India ETF’s & Funds Hold Up After Terror Attacks in Mumbai (PIN, EPI, IIF, IFN, INP)

247wallst — Wed, 26 Nov 2008 15:26:37 +0000

Fresh terrorist attacks targeted against foreigners in Mumbai, India have failed to thwart a market rally today. Reports have foreigners being taken hostage at premiere hotels frequented by the wealthy and by business travelers. Some 60 deaths have been reported. Interestingly enough, this has also failed to take the wind out of the Indian ETF’s and Indian ADR’s which are actively traded in the US. ETF and fund price moves are as follows:

PowerShares India (NYSE: PIN) up 4.5% at $11.31
WisdomTree India Earnings (NYSE: EPI) up 4.1% at $10.37
Morgan Stanley India Investment Fund, Inc. (NYSE: IIF) up 1.4% at $12.39
India Fund, Inc. (NYSE: IFN) up 4.1% at $17.47
iPath MSCI India Index ETN (NYSE: INP) up 4% at $28.72

We also added in an after-report list to the ADR’s and active stocks we track that trade in the U.S. to show a broad interest as well.

Jon C. Ogg
November 26, 2008

Posted in Emerging Markets, ETF Tagged: EPI, IFN, IIF, INP, PIN

ETF Launch: PowerShares India Portfolio (PIN, INFY, IBN, SAY, SLT, TTM, WIT)

247wallst — Wed, 05 Mar 2008 12:58:46 +0000

We have now seen two Indian stock ETF’s successfully launch in the last few weeks. This morning there was another ETF launch on NYSE, although you can see the February news release with the full details. The PowerShares India Portfolio Fund Exchange Traded Fund listed under the ticker symbol "PIN" and began trading on NYSE Arca today. This ETF is based on the Indus India Index and tracks the performance of the Indian equity markets as a whole with representation across the consumer products, information technology, health sciences, financial services, and heavy industry sectors.

According to the press release at NYSE, the following NYSE listed ADR shares are a part of the index currently included in the Indus India Index:

Infosys Technologies Ltd. (NASDAQ: INFY), ICICI Bank (NYSE: IBN) Satyam Computer Services (NYSE: SAY), Sterlite Industries (NYSE: SLT), Tata Motors (NYSE: TTM), Wipro Ltd. (NYSE: WIT)

As a reminder, because of percentage foreign ownership limitation rules and because of ADR conversions, many US-traded ADR’s actually trade at premiums to shares traded locally in India. WisdomTree also recently launched an ETF that tracks Indians stocks at the local exchange level.

Jon C. Ogg
March 5, 2008