Is it Time to Sell India?

From the third quarter of 2013 to the end of June this year, the Indian stock market Sensex index climbed 38% in US dollar terms, is it time to take profits?

Hermes 2 September, 2014 | 1:30PM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here , Jonathan Pines, Portfolio Manager of the Hermes Asia ex Japan Equity Fund explains why investors should take profits from Indian equities. 

As contrarian investors, we typically buy stocks that have underperformed the market for a number of months – sometimes quite significantly. We are able to do this because we are truly long-term investors and focus on value, rather than news flow. Our positioning in India is a good example of this.

The Indian stock exchange sold off sharply in August last year, especially in US dollar terms, with the market hit by concerns about the impact of Federal Reserve tapering. We used this sell off as an opportunity to increase our exposure to specific Indian stocks.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Bharat Electronics Ltd183.35 INR-0.65

About Author

Hermes  Hermes is a multi-asset fund manager offering global institutional and pension fund clients access to a broad range of specialist, high conviction investment teams.

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