Wednesday, September 24, 2014

The Largest Democracy in the World is Not the United States: You Should Consider Investing in this Country

Did you know that the United States is not the largest democracy in the world, based on population? Do you know what country is it? India is a democracy that has roughly four times the population of the US.

India has a new pro-business Prime Minister. Narendra Modi is hoping to increase foreign investment in the country by cutting back on over-regulation and bureaucracy. This could be a strong catalyst for growth in India.

One way to invest in India is through the India Fund (IFN). If you are looking for individual stocks, there are over a dozen Indian stocks that trade in the United States, according to

Infosys Ltd. (INFY) is a business and technology consulting company, which has a trailing price to earnings ratio of 19 and a forward price to earnings ratio of 16. Earnings for the latest quarter were up 15% on a 7% rise in revenues. The company pays a yield of 2.3%.

ICICI Bank (IBN) is one of the major banking institutions in India. It trades at 16.4 times trailing earnings and 13.2 times forward earnings. Quarterly earnings were up 3% on an 8% increase in revenues. The stock has a yield of 1.5%.

Other India stocks that pay dividends include Sesa Sterlite Ltd. (SSLT) and 1.0% and Wipro Ltd. (WIT) at 1.4%

Since India is now an extremely influential country in the region and hundreds of millions of its people are moving into the middle class, India deserves a close look as a place for investment opportunities. A resource for finding these opportunities is available through the free list of Indian stocks, which includes information on the PE ratio, the forward PE, the PEG, and the yield, at

Disclosure: Author didn't own any of the above at the time the article was written.


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