Posted by: sanjayshetty | September 29, 2007

Scouting for investments in the Indian Stock markets

For a while now, I’ve been scouting quite a few India related online stock broker sites and general investment sites and data sources for companies listed on the Indian stock markets. It’s a sad scenario.

Below is a small list of such sites:

www.moneytoday.in from the India Today Group
www.moneycontrol.com from CNBC TV 18
www.myiris.com
www.sharekhan.com
www.kotakstreet.com
www.icicidirect.com
www.equitymaster.com
www.idbipaisabuilder.in
www.religareonline.com

Here are some strange facts:
1. None of the sites provide 10 year data on companies listed in the Indian markets. The max most of them provide is 5 years of data and most don’t provide detailed cash flow data.
2. Stock screeners are either absent or with such little features that they’re useless.
3. The sites of the stock exchanges are worse making it extremely un-intutive to navigate and reach relevant data.

There are many more sites than those I’ve listed out here, however, they’re not any better in terms of the data needed for an investor to evaluate a company in detail.

There are 3 paid sources which I’ve found which provide 10 year detailed data on companies listed on the Indian stock markets:
http://www.cmie.com/ with it’s Prowess Product the cost of it’s single user annual subscription is INR 60,000/- which is quite prohibitive for the individual startup investor. This is by far the best source of data I’ve seen.
http://www.capitaline.com/ – with its Capitaline Plus a Yearly Subscription INR 1,50,000 or USD 3,750 which is prohibitive by all counts.
http://www.asiancerc.com/insight.htm – with it’s Insight product which is the cheapest of the paid data providers. However, the demo site I tried, had links to data that didn’t work. So one would rather avoid it completely. Interestingly this company provides backend data for a couple of the investment brokerage sites.

In such an environment the fate of the individual Indian investor is challenging indeed. He has to resort to manually going thru the various annual reports to evaluate companies. While trying to prepare a shortlist of companies to study further the lack of stock screening tools makes the process even more difficult and slow.

If there are free sources out there with 10 year data on the Indian stock market please feel free to comment and let me know and I’ll gladly edit this post to include the data.

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Responses

  1. sanjay, i think your analysis on screens for indian stocks is accurate. I use the same resources as you have listed. i mostly use moneycontrol as their data is timely and less erroneous. some websites like icicidirect or myiris do not even correct for bonuses and stock splits. so their screens are not just bad, but even misleading.
    i have developed excel based stock screens and use the various websites to manually search for ideas. after i find a few, i have to manually look at the AR to get 10 yrs data.


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