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The #1 Play on India’s Booming Stock Market

While U.S. investors fret about the collapse of the housing boom, India’s prospects couldn’t be stronger. Housing units are expected to grow by an estimated 250 million over the next decade. That’s more than twice the number of housing units in the entire United States today! For a bank in ICICI’s dominant market position, financing such breakneck expansion is a license to print money.

And ICICI is already benefiting tremendously from the explosion in consumer finance, fueled by robust demand for home and car loans from a prospering middle class population in India. ICICI has the financial deck stacked in its favor. The fees banks like ICCI can charge to consumers often far exceed what they could get away with in more competitive, developed markets.

ICICI’s recent blow out results underscore the strength of its position in India. Net profits rose 30% compared with the same period a year ago. Deposits were up a whopping 57%. Loans shot up 45%, quarter over quarter, with high margin consumer lending already accounting for two thirds of its outstanding loans. Net interest income — the difference between interest earned on loans and interest paid on deposits — rose 47%. And ICICI is just getting started. Profits are expected to forge ahead at 35% per year as far as the financial eye can see. As the deputy managing director of ICICI remarked: "We’ve never had it so good"

The Indian stock market also has the wind at its back. Fourth quarter is the best time of year to be investing in Global Bull Markets. And this year is no exception. Foreign institutional investment is giving momentum to a strong rally in the market. No one wants to miss out on India’s growth story.

So buy ICICI (IBN) at market today, and place your stop at $30.90. For potentially even quicker double-digit percentage profits, buy the March $35 call options (IBNCG.X)

PORTFOLIO UPDATE

To make room for ICICI, let’s close our position in TEVA (TEVA), which has been lagging our other profitable Global Bull Market picks.

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.