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FFH/Prem looking for growth/diversification in India


Alekbaylee
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  • 8 months later...

Anyone know if Prem and co. are taking advantage of the collapse in valuations of Indian financials?

 

Now may be an excellent time to start mining for bargains.

 

http://online.wsj.com/article/SB10001424127887323407104579037991813071888.html

 

The Indian rupee fell to a fresh record low against the U.S. dollar Tuesday, causing a selloff in local stocks.

 

The Indian currency breached the key level of 66.00 to the dollar, partly on fears over a U.S.-led military strike in Syria, which could push oil prices higher globally. Investors were also anxious about how India will bear the cost of a bill passed late Monday that aims to provide subsidized food to millions of Indians.

 

The rupee quoted at a new all-time low of 66.24 in late Asian trade Tuesday, compared with 64.30 Monday.

 

The Bombay Stock Exchange's S&P BSE Sensex index fell 3.2% to 17968.08. On the National Stock Exchange, the Nifty index lost 3.5% to end at 5287.45.

 

http://themoneyconverter.com/exchange-rate-chart/INR/INR-CAD.gif

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Anyone know if Prem and co.are taking advantage of the collapse in valuations of Indian financials?

 

Now may be an excellent time to start mining for bargains.

 

http://online.wsj.com/article/SB10001424127887323407104579037991813071888.html

 

The Indian rupee fell to a fresh record low against the U.S. dollar Tuesday, causing a selloff in local stocks.

 

The Indian currency breached the key level of 66.00 to the dollar, partly on fears over a U.S.-led military strike in Syria, which could push oil prices higher globally. Investors were also anxious about how India will bear the cost of a bill passed late Monday that aims to provide subsidized food to millions of Indians.

 

The rupee quoted at a new all-time low of 66.24 in late Asian trade Tuesday, compared with 64.30 Monday.

 

The Bombay Stock Exchange's S&P BSE Sensex index fell 3.2% to 17968.08. On the National Stock Exchange, the Nifty index lost 3.5% to end at 5287.45.

 

http://themoneyconverter.com/exchange-rate-chart/INR/INR-CAD.gif

 

They already own the largest stake in the NBFC India Infoline which trades at a discount to book.

 

I usually stay away from financials because I'm not smart enough to discern lending practices. I believe it was Jim Slater who wrote in Return to Go that newly formed fast-growing financial companies have a high probability of going bust at the end of a boom cycle in the economy because they normally get to lend only to the worst credit.

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Anyone know if Prem and co.are taking advantage of the collapse in valuations of Indian financials?

 

Now may be an excellent time to start mining for bargains.

 

http://online.wsj.com/article/SB10001424127887323407104579037991813071888.html

 

In india, the asset quality of most banks and financials is suspect. In addition, disclosures are poor (case in point - the annual reports of most banks have way less disclosure than the 10Q of a bank like BAC).

On top of the above problems, there is a tendency to extend and pretend (with support from Reserve bank of india). So we may end up with a japanese type situation, where banks will not write down bad loans and wait for these loans to get cleared off slowly.

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