Can India Outperform Again in 2015?

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India had a good year in 2014, with the Bombay Sensex recording its best performance in five years. Across the board, India made solid gains, from small caps to large caps.

This year India actually entered the top 10 largest global markets, as measured by market capitalization. India contributed 2.39% out of the total global market capitalization in 2014. In the previous year, the country contributed 1.83%.

The small-cap index rose to a seven-year high, while trading down just 20% from its 2008 highs.

iShares MSCI India (BATS: INDA) was recorded as the third best-performing index in the world for 2014. The exchange traded fund (ETF) recently traded at $30.40, in a 52-week range of $22.79 to $32.38. At the same time, the MSCI India’s price-to-earnings ratio rose to a four-year high, while relative valuations rose to a three-year high.

Indian debt rating upgrades exceeded downgrades by the largest amount in three years.

In previous years the Bombay Sensex had recorded gains of:

  • 93% in 1985
  • 82% in 1991
  • 46% in 2006
  • 47% in 2007
  • 81% in 2009

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24/7 Wall St. has also included a few other predominant Indian stocks and added some color: recent prices, the 52-week range, 2014 performance and consensus target prices where applicable.

iShares India 50 (NASDAQ: INDY) traded Friday at $30.38, against a 52-week trading range of $21.50 to $32.02. It recorded a gain of 28% in 2014.

India Fund Inc. (The) Common S (NYSE: IFN) traded at $26.34, in a 52-week range of $18.70 to $29.50. It had a gain of 38% in 2014.

WisdomTree India Earnings ETF (NYSEMKT: EPI) traded at $22.34, compared to a 52-week trading range of $15.71 to $23.64. This ETF saw a gain of 29% in 2014.

Tata Motors Ltd. (NYSE: TTM) traded at $43.75, against a 52-week trading range of $26.47 to $48.88. The consensus analyst price target is $47.09. In 2014, Tata recorded a gain of 38%.

ICICI Bank Ltd. (NYSE: IBN) traded at $12.06, in a 52-week trading range of $6.19 to $12.32. The consensus price target is $13.30. The stock gained 58% in 2014.

Infosys Ltd. (NYSE: INFY) traded at $31.75, against a 52-week trading range of $25.03 to $35.18. It has a consensus price target of $29.54. In 2014 the stock gained 13%.

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