Brokerage manager thinks ‘Reliance Industries will do well’

Owhile the shares of many India-based companies did not perform well in the first half of the year, Reliance Industries outperformed thanks to its acquisition and conversion strategy. As a result, a brokerage is bullish on the energy and telecommunications conglomerate.

“Overall, we believe Reliance Industries will do well,” said Shrikant Chouhan, executive vice president and head of equity research at Kotak Securities.

Speaking to CNBC’s “Street Signs Asia” on Monday, Chouhan noted that Reliance has made many small acquisitions and is “very aggressive” in converting those businesses into digital businesses.

“Telecommunications and digital will bring a lot in the near future,” Chouhan said before adding that the company is taking steps in the right direction.

Chouhan noted that Kotak “expects the stock to move towards at least 2,850 or 3,000 [rupee] in the next few weeks, maybe.

While India’s Nifty 50 index and S&P BSE Sensex are both down nearly 9% year-to-date on Monday, shares of Reliance are up around 5% over the same period.

Reliance is a major holding in EMQQ Global‘s Emerging Markets ETF suite, which includes Emerging Markets Internet & E-Commerce ETF (NYSE Arca: EMQQ)the Next Frontier Internet and E-Commerce ETF (NYSE Arca: FMQQ)and the Indian Internet & E-Commerce ETF (NYSE Arca: INQQ).

By focusing on the Internet and e-commerce in emerging markets, EMQQ seeks to capture the growth and innovation occurring in some of the largest and fastest growing populations in the world. More than 60% of EMQQ’s assets are directed towards China.

FMQQ, on the other hand, seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the Next Frontier Internet and Ecommerce Index (FMQQetf.com). Although it has the same investment philosophy as EMQQ, FMQQ has no China-based holdings. Securities must meet a minimum market capitalization of $300 million and pass a liquidity filter that requires an average daily turnover of $1 million.

Launched in April, INQQ intends to capitalize on India’s growing digital and e-commerce sectors. INQQ seeks to provide investment results which, before fees and expenses, generally correspond to the price and yield performance of the India Internet and Ecommerce Index.

For more news, insights and strategy, visit our Emerging Markets channel.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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