By Nigam Arora & Dr. Natasha Arora
Signal(s) to enter, add, reduce, exit, hold or change.
GDP
India’s GDP grew by 7.8% in the April – June period vs. 7.7% consensus. This is a very strong growth number and the fastest in a year.
India Vs. China
India is ascendant. As a comparison, we previously shared with you in the Morning Capsule dated July 17 that China’s GDP grew by 6.3% year-over-year vs. 7.1% consensus. In China (FXI, ASHR), the growth was slower than expected.
G-20
The G-20 summit is in India next week. G-20 represents the world’s 20 largest economies. President Biden is attending. There was hope that Biden and China’s President Xi would meet in India. Now, there are reports that Xi is likely to skip the summit. For the longest period, China was the fastest growing economy. Now, India is eclipsing China. There is speculation that the reason behind Xi skipping the meeting is increasing rivalry between India and China.
Supply Chain
Corporations are rapidly shifting supply chain out of China. India is a beneficiary. Other beneficiaries are Vietnam (VNM), Indonesia (EIDO), Thailand (THD), and Malaysia (EWM).
Analysis
India is suitable for both strategic and tactical positions. India is the best growth story among large economies in the world.
India’s long term future is bright, but in the short term, the market is technically overbought and valuations are expensive.
ETF
The ETF of choice is EPI.
Zones
The buy zone is 🔒 (To see the locked content, please take a 30 day free trial).
The short term rating is 🔒.
The medium term rating is 🔒.
The long term rating is a 🔒.
What To Do Now
Those in India ETF EPI may consider continuing to hold. Those not in EPI may consider following the parameters given above.
This post was just published on ZYX Emerging Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
