TechLahore
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Tech Lahore before you jump up to add your 2 cents, I would like to know your views about Riaz's argument.
1. Indian markets are bloated and overpriced. A correction waiting to happen.
2. The accounting system of Indian companies is a gimmick.
3. The market cap to GDP of India is equal to unity and thus overpriced.
Thanks in advance
1. Not in the short term, but I think there is a mid-term correction risk, yes.
2. Don't know enough about this. Yes, the Satyam scandal made the headlines but I really don't know much about the intricacies of Indian corporate accounting. If I am not mistaken, there was some auditor hanky panky involved in the Satyam case too? But again, I don't want to generalize.
3. I don't want to speak negatively of the SENSEX, but personally I would rather invest in a market where the MCAP << GDP because I believe in value investing. The US is somewhat of an outlier because of its stability and historic ability to attract massive amounts of capital from all around the world... therefore, I would rather not compare the SENSEX or KSE to American markets.