India’s Sensex closed at 20,032 on Friday.This is not far from the all-time high of 20.873 reached in January 2008. During the credit crisis, the index reached a low of 8.160. In just over 18 months the index has rebounded sharply gaining over 150%. This dramatic rise is mostly based on the assumption that the …
Continue reading ‘Ten Reasons Why India’s Stock Market is a Bubble’ »
The main stock index in India, the Sensex is up 80% in local currency YTD. After falling to about 8000 in March this year it has more than doubled and closed at 17,360 on Dec 24th. YTD the index has risen by 81%. Many investors are now wondering if the Sensex repeat this incredible performance …
The Dow Jones BRIC India 15 Index tracks the performance of the 15Â most liquid and largest stocks traded on the Indian exchanges. As of November 30,2009 the index has a total return of 77% in US dollar terms. The dividend yield of the index is 0.95% and the annual rebalancing occurs in June. The …
Continue reading ‘Ten Components of the Dow Jones BRIC India 15 Index’ »
The main stock market index the Bombay Sensex is up 79.6% year-to-date. Is this astonishing rise justified by fundamentals in the economy or is the Indian stock market forming another big bubble?. In this post let me present some points to indicate that the stock market in India is in fact forming a bubble that …
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Back in April this year, the rating agency Crisil warned that gross Non-Performing Assets (NPA) of banks in India may reach 5% by 2011. Most of the rise in NPA will be due to problems with commercial loans. ICICI Bank’s (IBN) NPA stood at 4.33% in May a 1% increase over the previous year. The …
Continue reading ‘Rising NPAs of Indian Banks Need Not be a Worry’ »