Just shy of the previous high and with the government data saying US gdp is 1.1%. I'd put my Yen under my mattress personally :)

Bill

I remember you writing about India back on December 28th. I've received alerts IFN has hit highs repeatedly this week. RSI (7) is in the 90's.

What's your outlook here?

Disclosure: No position in IFN.

My Take On IIF/IFN (INDIA) (^BSESN):
Disclosure: No holdings in either or related funds

India Summary (Recent activity)
- Retail market to now open to foreign investment Take: What a move to kill your mom and pop shops that dominate the land. The word in India for a mom and pop shop is pronounced "CUN-YA". The government has said it is okay for any foreigner to open shop as long as it has a 50-51% max ownership and that it sells "JUST ONE BRAND". This means a Nike store can open there and sell its sneakers/bags/boots/hats/t-shirts under the Nike name and make a killing.

The people hunger for foreign goods and look up to the names and shopping possibility made available in N. America. This is going to throw billions into the economy and spread through a multiplier effect - Main beneficiary - Reliance Industries that plans to inject 750MM into supermarket chains.

Issue #2: Home Prices - Housing market is on fire with some prices rising 30% in six months or more. Take 1Billion people and a rising middle class and everybody wants that new condo or famous "bungalow" style dwelling. Rents on some prime real estate run from Rs. 19,000-24,000 per square foot in Bombay.

Issue #3: GDP Growth - GDP growth continue to blister on and even though India has recently raised its interest rates perhaps in turn signaling futher rate increases - The upside is far too great to put the brakes on this show.

Issue #4: Outsourcing Trend Remains Intact - Companies in N. America continue to struggle and almost every blue chip tech name has fled there to invest millions to billions such as Intel and Microsoft. Ever try calling the Dell Sales or Tech Support Line and notice the 1 second lag? You're talking to India! The margins they enjoy may level due to the increasing wage structure to employ such intellectual capital but for now firms are on a decent footing

Issue #5: Auto Sector - Names like Toyota, Hyundai are the top names and CEO's drive them. Tata Motors and Opel are also strong. These rising middle class want faster and more luxurious cars while the lower classes just want cars (a progression from the "Scooter/Moped") This is one market that has automakers reporting 14% profit vs companies like GM and Ford caught in a funk. The number of cars on the road by 2010 should hit a record and if anybody understands how this will affect gas prices is certaintly to be seen. India's government "FIXES" the price of gas and you pay the same price all year around from what I recall. You do not pay the varying costs at the pump and shop for deals. "Petrol" as they say is fixed and from what I remember a costly phenomenon to top the tank. The pumps in India are 100% FULL SERVE always. You do not pump as it just gives one more man an income. You do not tip but you do tip for air if you choose to fill your tires or perhaps "Tyres" in that part of the world.

Conclusion: India is adapting, changing and benchmarking itself to the lead players in the global world. It wants to have a headline in the spotlight for every headline China grabs. When you hear the words "China" on TV, you will mark my words hear the words "India" shortly after or in tandem. Soon you may even hear "India and China" rather than "China and India". The opening of the retail sector to foreign investment while capping ownership to 51% and having just "One Brand" is beyond ingenious. It keeps the locals somewhat happy, it keeps the foreigners happy. Bottom line from India = I want what you have and I'm taking calculated risks to mimic the USA. One Billion people and a rising wealth base combined with nuclear capability it is becoming one large Asian Tiger.

I neglected to talk about India's Cell Phone Market which is far superior to the phones and technology you see in the USA/Canada. They're using all sorts of gadgets because they went from point F to Point A. What did we do? We went step by step. What I will never understand is how people can virtually hang from a moving train, some actually sitting on top of the train where the driver looks out from and still operating a cell phone! A land of mystery and promise. I hope to visit soon so I can learn more to deliver additional value on Indian Trends.

New 52wk High for BSE Market (1/27/06)

/d