« Ford, Ford Credit downgraded by Moody's, Thurs., August 25, 2005, 7:39 AM | Main | Ridiculous trade war, Thurs., August 25, 2005, 9:23 AM »
August 25, 2005
Interview with PM of India, Thurs., August 25, 2005, 8:25 AM
By the end of Sept, I'm hoping to be able to blog more about India. That's because India represents one of the most successful emerging economies in the world, and the equity markets there are starting to quickly mature. I have associates in Mumbai and Bangalore who could greatly assist me from a local perspective, given that, while I have flown over it, I have never actually visited India.
Yesterday I received the McKinsey Quarterly, which contains an interview with the Prime Minister of India, Dr. Manmohan Singh.
The McKinsey intro to the article states:
· In this interview on India's economic and business prospects, the prime minister also discusses his country's challenges, saying that the ultimate goal is to wipe out poverty, ignorance, and disease.
· He said that increasing foreign direct investment, particularly in infrastructure, is vital, but that we may not be able to reach where the Chinese are today." On opening up the retail sector, he said he had his task cut out" to convince his coalition partners.
· He also said coalition politics may make the pace of economic reform slower than some would wish, but the direction in which the country is headed is unmistakable. If I have any message," Singh said, "it is that it is our ambition to integrate our country into the evolving global economy. We accept the logic of globalization."
On Aug-12, I wrote a very negative blog on the near-term prospects for share prices in India.
To wit: I'm going to forecast that the closed-end Morgan Stanley India Investment Fund (NYSE: IIF) has reached a peak, and will now either decline or sidetrack for many months from this point. I think the enthusiasm has been overdone."
For the most part, I picked the cycle top pretty well, but I'll leave that for you to decide.
For a quick review of India stocks and Funds that trade in the U.S.:
For these interactive charts, you can change the time horizon, plus add technical indicators too.
I believe that India will present terrific equity market buying opportunities; however, traders may have to wait until the global market corrects.
Posted by Posted by Bill Cara on August 25, 2005 08:25:55 AM | Category: India