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http://biz.yahoo.com/ap/060522/india_markets.html?.v=4

Indian Stocks Plunge 10 Percent

Monday May 22, 8:51 am ET

Indian Stocks Plunge 10 Percent; Trading Halted for an Hour

BOMBAY, India (AP) -- India's benchmark stock index tumbled more than 10 percent Monday, hitting its daily drop limit and triggering a one-hour halt to trading, as investors dumped blue chips that have surged over the last year.

The 30-share Sensex plunged 1,111.70 points -- the biggest point drop -- or 10.2 percent, to 9,826.9, in two hours of trading Monday morning. On the rival National Stock Exchange, the 50-share S&P Nifty index fell 350.45 points, 10.8 percent, to 2,896.45.

The Sensex has fallen 20 percent since reaching an all-time high of 12,612, points on May 10, nearly double where it was last April.

Many believe the market has climbed too high too fast.

"What has happened is a certain amount of nervousness in the market. My advice to retail investors is to stay invested," said Finance Minister P. Chidambaram.
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Indeed, there was talk of suicide watches, as well.
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http://finance.yahoo.com/q/bc?s=MINDX&t=6m&l=on&z=m&q=l&c=ifn

Talk about a couple of winded sprinters?

MINDX and IFN.

Ivan
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Hi all,
I have been waiting for a good buy in opportunity, any thought on this being the time?
Pencil, I really appreciate all the information, thought and energy you put in to "Pencils Palace"
Thanks, Kelly
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>>>I have been waiting for a good buy in opportunity, any thought on this being the time?...>>>

Let it shake out...there is no rush. Once it crashes through the 50-day moving average, there may be more room to tumble.

That green line is the 200-day moving average. Let's see if it supports at that price level or crashes through it as well.

http://finance.yahoo.com/q/ta?s=IFN&t=3m&l=on&z=m&q=l&p=e50,e200&a=&c=

Ivan
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Hi Kelly,

I agree with Ivan that there may be more tumbling, but you never know. If you buy in thirds, I would open a position here, and if the price gets hit further down buy another position, etc. I continue to believe that India will provide great long-term returns, but there will be many corrections along the way. So, I would recommend not filling out an entire position just yet, but maybe open a small position to get some exposure.

The one benefit of investing in an Indian company/fund, is because you know of how stocks did in India before the market in the U.S. opens. For instance, today Indian stocks closed up 3.3% (India's benchmark index) with a day of volatile trading: http://biz.yahoo.com/ap/060523/india_markets.html?.v=2

So, things should be a little better today. With most foreign countries, you get the news of how things performed before the U.S. market opens, which can be an advantage.

Let me know if you have any more questions, and I'm extremely happy to hear that you are enjoying this board, I hope you and everyone else will stick around for years to come.

Best,

David K
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Let it shake out...there is no rush. Once it crashes through the 50-day moving average, there may be more room to tumble.


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Yep -- good advice, as if anyone needs to hear this from me, as I'm still learning, too.

duey
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That sucking sound, capital being withdrawn from the Indian equities, continues. IFN down over 40% in less than a month. That is bleeding:

http://finance.yahoo.com/q/bc?t=3m&s=MINDX&l=on&z=m&q=l&c=ifn

Patience for those wanting in.

Ivan
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Hi Ivan,

Thanks for providing an update of MINDX and IFN. I'm going to open a second position in IFN once it settles down for a week or two, mainly because there are so many other opportunities in my portfolio now with such a limited amount of cash, so I really have to narrow down the list of what to reinvest in.

IFN has been hurt more than the Indian market, which has now lost more than 20% over the past 3-4 weeks. For those of you wanting to add a second position, wait. Why? The Indian market went down another two percent in today's trading:

http://biz.yahoo.com/ap/060607/india_markets.html?.v=1

The great thing about foreign investments is that you know what the ADRs will do, because they trade over in Asia while we are asleep. So, every morning we wake up and have a good feeling of what our foreign investments will do that day. India stocks went down again on heavy selling, so we should have another down day. And for those investing in China and Chinese stocks, watch out, their stock market took a 5% hit.

As Ivan said, patience. Patience is what will help you win in the market. Foreign investments will offer risk because you can basically have two stock exchanges and two countries affecting their share price, but in the long run I think India will deliver winning results.

Best,

David K
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Greetings everyone!

I'm admitting my lurking/reading status on the board. Seems like I'm always about 10 days behind here! I'm slowly catching up. I've been reading the posts and peppering recs - and I've been learning a fair bit too. ;)

There is so much that would be under my radar if it wasn't brought up on this board. Investing in an index fund of foreign companies is a good example. I didn't even know this was possible!

Anyway, just wanted to say I'm here in the background, appreciating all the great posts, and looking forward to contributing when I can say something of value.

Best, Robin
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