Global investors need to “hit the BRICs” – literally. Back in 2003, the Goldman Sachs Group Inc. (GS), eager to push its clients towards global investing – especially in the emerging markets – invented the acronym “BRIC” (Brazil, Russia, India and China) to represent the four emerging markets it believed were destined to become dominant economies in the years to come.

India is suffering high inflation, its growth is slowing and there are signs that a credit crunch is about to hit. But this can work to the advantage of investors. Without these problems, India’s stock market would be trading at 40 times earnings - and not 18 times earnings, as it is now.

A view on India

According to academic research, special situations like stock splits, special dividends and spin-offs could provide fertile hunting grounds for investors.