This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Improving Infrastructure, Favorable Demographics, Progress On Economic Reform Could Drive Indian Equities Higher, According To The Boston Company Asset Management

Stocks in this article: BK

NEW YORK and LONDON, Aug. 8, 2013 /PRNewswire/ -- Accelerating infrastructure investments, favorable demographics, and progress on economic reform could drive higher returns for Indian equities for years, according to a white paper from The Boston Company Asset Management, LLC, the Boston-based global equity investor for BNY Mellon.

The paper, Uncovering Opportunities in Indian Equities, notes current valuations appear to discount any type of economic or earnings recovery.

The factors that could drive Indian growth have been overshadowed by investors' concerns over negative issues such as the country's fragmented government, power outages, poor roads and deteriorating margins in many business sectors, according to the report.

"The noise surrounding India's current economic flaws could cause investors to miss the key advantages that the country possesses as well as its bright future prospects," said Andrea M. Clark, CFA, author of the report and portfolio strategist for The Boston Company.  "Most importantly, India boasts a large working-age population that will drive expansion through personal consumption.  Unlike China and many developed nations, India is not grappling with an aging population that will need substantial societal support."

Additional potential drivers of economic expansion noted in the report include:

  • Urbanization, which could significantly boost housing and transportation;
  • Improving rural wages, helped by investments in infrastructure and mobile communications;
  • Cooperation among various parties in India's coalition government to pass reforms needed to improve the economy; and
  • Potential trade agreements to improve exports.

Another factor for investors to consider, according to the report, is the approaching national election in 2014. While elections often cause investors to become cautious, the parties in India's coalition government appear to be working together to pass necessary reforms.

" India's gross domestic product is at a five-year low, but the country appears poised for a rebound," said Clark. "Considering the government's agenda for reform, Indian equities have become increasingly attractive for the long-term investor."

Notes to editors:

The Boston Company Asset Management, LLC, a BNY Mellon Investment Management boutique, provides investment management services for corporate, public, mutual funds and union sponsored and jointly trusteed retirement plans, endowments and foundations.  Assets are managed by The Boston Company as well as its personnel acting as dual officers of either The Dreyfus Corporation or The Bank of New York Mellon.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs