Why India Continues to Disappoint Investors in 2018

Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) is a top drug maker that serves India and other international markets with generic drugs, branded drugs, compounds and ingredients. Even its shares have not been immune to the pressure in 2018. ADSs of Dr. Reddy’s Laboratories were last seen trading at $33.77, in a 52-week range of $28.13 to $39.96. The market cap is just $6 billion.

HDFC Bank Ltd. (NYSE: HDB) was trading down 1.1% at $92.34, in a 52-week range of $89.07 to $112.10. This bank and financial services giant in India and in nearby international markets has a $76 billion market cap.

ICICI Bank Ltd. (NYSE: IBN), one of India’s top banking and financial services outfits, was down 2.1% at $8.29 on Wednesday, in a 52-week range of $7.61 to $11.26. It has a market cap of over $27 billion.

Tata Motors Ltd. (NYSE: TTM) is now rather diversified in making autos, and it owns the Jaguar, Range Rover and other brands on top of its Tata and Daewoo names. Its ADSs were last seen up by a penny a share at $15.53 in New York trading on Wednesday. Tata Motors has a 52-week range of $15.29 to $35.47, and its market cap is listed as roughly $10.3 billion.

Vedanta Ltd. (NYSE: VNDL), a top natural resources company in India, saw a 3.4% bounce higher on Wednesday. Still, its $13.22 ADS price has a 52-week range of $11.58 to $21.99. Vedanta also has a $12.7 billion market cap.

India is also one of the top IT-outsourcing nations, and it has several stocks with ADSs actively traded in the United States. Wipro Ltd. (NYSE: WIT) was last seen down two cents at $5.18, in a 52-week range of $4.50 to $5.99 and with a $20 billion market cap. Infosys Ltd. (NYSE: INFY) was down 1.7% at $10.09, with a 52-week range of $7.07 to $10.65 and a market cap of $42 billion.

The India Fund Inc. (NYSE: IFN), a closed-end fund that owns a basket full of Indian shares, traded at $22.05, after hitting a new 52-week low of $21.90. Its 52-week high is $28.74, and that is nearing a 25% loss from its highs. This fund is run by Aberdeen, currently trades at a stated 11.9% discount to its net asset value and had total assets of about $785 million as of the end of August. That asset size figure will be lower now due to the sell-off.

Maybe India can get back on track for 2019. Maybe. For now, the uncertainty persists.

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