Recent Indian News regarding the purchase of S400 from Russia
S400 or SA-21 Growler is a Russian Missile Defence System, which is a modern long-range surface-to-air missile (MLR SAM). That is, it can be used to hit targets in the air from the land. Hence, It can engage all types of aerial targets such as aircraft, ballistic and cruise missiles, unmanned aerial vehicles (UAV). It has a range of 400km and an altitude of up to 30km. It can track and attack various super fighter planes such as the American built F-53 and can manage to target 6 of them at a time. It will cost for India around $5 billion (over Rs 40,000 crore). India needs this type of missile machines as we are staying in a hostile neighborhood. The weakening of Indian Airforce and Chinese purchase of S400 are the top reasons for India to get S400 from Russia.
US Sanctions as per CAATSA
Now as China purchased Nuclear weapons from Russia, it welcomed sanctions for the buyer (here China) from the US under CAATSA (Countering America’s Adversaries through Sanctions Act). As per CAATSA, Countries buying Nuclear weapons from Russia, Iran, and North Korea will have to face US sanctions following their involvement with any of the nuclear allies listed in the sanction subjective list of CAATSA.
Currently, India has an urgent requirement of S400, frigates and assault rifles. The Country needs to be secured from potential threats and country fellows need to be safeguarded and should be the first priority of all. Recently, at the start of the October month of 2018, India and Russia inked 8 deals including the purchase of S400 Missile.
Now, what about CAATSA? Will Trump impose sanctions on India very sooner?
In a press talk with Mr. Trump post-Indo-Russian deal, he replied that India will very sooner get to know about the what he will be doing.
It also has to be noted that waivers will only be taken into consideration by the US President Donald Trump. And waivers for India in this case of nuclear weapon purchase is strictly exempted in CAATSA.
Our Thought Process over this
Suppose if Trump imposes sanctions on India, some later day, India’s IT sector and Pharma sector which has business in the US is expected to hit badly. We advise booking the profits from stocks of those kinds before it starts plunging after the US sanctions.
Here we list few Indian Stocks having business in the US, these are just a few, do some research for more such stocks:
Source: TCS Annual Report 2017-18
Source: Infosys Annual Report 2017-18
Source: Wipro Annual Report 2017-18
Source: Cognizant Annual Report 2017-18
Source: Sun Pharma Annual Report 2017-18