India to Borrow and Spend More in 2010-2011

[Mahakaya]

The Satyam scandal proves that there is nothing safe in Indian markets either. Nothing of that scale has happened in Pakistan.

Let's not forget that the former chairman of Satyam, a name that literally means "truth" in Sanskrit, said he cooked up key financial results, including a fictitious cash balance of more than $1 billion, raising doubts about the IT revolution hype in India that has attracted many international companies and significant foreign investments to India.

Haq's Musings: Satyam Scandal Hurts Confidence in India

LOL - HAHAHAHAHHAHAHAAHA!

Buddy please stick to the topic - do not force me to really counter you. But Oh WTF so here goes:

Satyam is not the only player in IT - WE HAVE WIPRO, INFOSYS, TCS the world's GIANTS IN IT.

SATYAM HAS BEEN TURNED AROUND BY THE MAHINDRA GROUP AND RECENTLY POSTED PROFITS.

The scandal was of $1 Bn and the company just made those revenues. The Satyam guy is in Jail.

Till date the amount of Money that was taken out of India by FDIs in 2008 has already been pumped back into the system.

Nothing of that scale in Pakistan - ofcourse you need to reach that SCALE first!

 

[Jade]

I am not sure how you are making up these numbers to suit your conclusions. If you look on the last page of the Economist magazine, it carries performance figures for several stock exchanges, including Karachi and Mumbai.

Here they are for 2009:

India (BSE) 93%

Pakistan (KSE) 57%

With India's PE ratios more than twice those of Pakistan's, and the total market cap closing in on the total GDP, there is a big asset bubble growing in Mumbai.

The last time India's market exceeded its GDP was in 2008, and it was followed by a big crash. If I were you, I'd brace myself for anther crash here.

First, Stock Market Capitalization to GDP Ratio is unscientific. There are many instances where predictions on Stock Market Capitalization to GDP Ratio went wrong.

Second, percentage level of Stock Market Capitalization to GDP Ratio of undervaluation and overvaluation is still debated

 

[Jade]

The Satyam scandal proves that there is nothing safe in Indian markets either. Nothing of that scale has happened in Pakistan.

Let's not forget that the former chairman of Satyam, a name that literally means "truth" in Sanskrit, said he cooked up key financial results, including a fictitious cash balance of more than $1 billion, raising doubts about the IT revolution hype in India that has attracted many international companies and significant foreign investments to India.

Haq's Musings: Satyam Scandal Hurts Confidence in India

Satyam scandal happening has less to do with Indian markets and more to do with corporate fraud. Indian markets are some of the most respected markets in the world. Corporate fraud is a not a phenomena that is limited to India…. Remember Enron, WorldCom.

There has to be something on the scale of Satyam in Pakistan to have happened something

 

[RiazHaq]

I am not surprised by the defensive responses to my post about Satyam.

As Pankaj Mishra says, "No inconvenient truths are allowed to mar" India's success story.

Haq's Musings: Western Myths About "Peaceful, Stable, and Prosperous" India

 

[karan.1970]

LOL - HAHAHAHAHHAHAHAAHA!

Buddy please stick to the topic - do not force me to really counter you. But Oh WTF so here goes:

Satyam is not the only player in IT - WE HAVE WIPRO, INFOSYS, TCS the world's GIANTS IN IT.

SATYAM HAS BEEN TURNED AROUND BY THE MAHINDRA GROUP AND RECENTLY POSTED PROFITS.

The scandal was of $1 Bn and the company just made those revenues. The Satyam guy is in Jail.

Till date the amount of Money that was taken out of India by FDIs in 2008 has already been pumped back into the system.

Nothing of that scale in Pakistan - ofcourse you need to reach that SCALE first!

Its a little funny(and a little sad) how someone belonging to a country with Zardari as a president has the gall to talk about Financial scandals of another country...

 

[karan.1970]

I am not surprised by the defensive responses to my post about Satyam.

As Pankaj Mishra says, "No inconvenient truths are allowed to mar" India's success story.

Haq's Musings: Western Myths About "Peaceful, Stable, and Prosperous" India

and the satyam scandal proves what??


That an Indian cooked books?? and may be indian politicians were involved??

and then what.. No one denies that.. and there have been such scandals in India and the rest of the world prior to this and will happen in future too..If that's what makes Pakistan better, then all the best...

 

[manish123]

I am not surprised by the defensive responses to my post about Satyam.

As Pankaj Mishra says, "No inconvenient truths are allowed to mar" India's success story.

Haq's Musings: Western Myths About "Peaceful, Stable, and Prosperous" India

If the stock markets in india are giving a P.E of 17 and 7 in pakistan, though not always true, stock markets tend to look ahead.What are they seeing in india where comparitively such a high valuations are being giving and not pakistan.I know for a fact that india has not seen a valuation below 13 except for the meltdown a year back.


I would really like some light on this question bcause I do have some skin in the game.

 

[RiazHaq]

and the satyam scandal proves what??


That an Indian cooked books?? and may be indian politicians were involved??

and then what.. No one denies that.. and there have been such scandals in India and the rest of the world prior to this and will happen in future too..If that's what makes Pakistan better, then all the best...

It proves that a high-profile, highly valued, public company listed on India's major stock exchange was able to get away with a billion dollar cash fraud that no one noticed for a long time.

If it hadn't been Ramalingan's own conscience that forced him to come out, the Indian authorities and the unsuspecting shareholders would not know it for many more years.

It also proves that there is in investing in India, as in other markets. There nothing particularly safe about Mumbai.

 

[manish123]

It proves that a high-profile, highly valued, public company listed on India's major stock exchange was able to get away with a billion dollar cash fraud that no one noticed for a long time.

If it hadn't been Ramalingan's own conscience that forced him to come out, the Indian authorities and the unsuspecting shareholders would not know it for many more years.

It also proves that there is in investing in India, as in other markets. There nothing particularly safe about Mumbai.

Sir this satyam saga is highly overrated by u .It is a blip on our radars seriously.

 

[notinlove]

It proves that a high-profile, highly valued, public company listed on India's major stock exchange was able to get away with a billion dollar cash fraud that no one noticed for a long time.

If it hadn't been Ramalingan's own conscience that forced him to come out, the Indian authorities and the unsuspecting shareholders would not know it for many more years.

It also proves that there is in investing in India, as in other markets. There nothing particularly safe about Mumbai.

Ever heard of ENRON?


did that make the US a bad market?
greed is basic human nature...be it india the US or pakistan

 

[karan.1970]

It proves that a high-profile, highly valued, public company listed on India's major stock exchange was able to get away with a billion dollar cash fraud that no one noticed for a long time.

If it hadn't been Ramalingan's own conscience that forced him to come out, the Indian authorities and the unsuspecting shareholders would not know it for many more years.

It also proves that there is in investing in India, as in other markets. There nothing particularly safe about Mumbai.

True for all financial markets across the word. The list is just too long.. Enron, Worldcom, AIG etc..

Equity Investment always carries the challenge of risk. Thats why the returns (when there) generally are in excess of the risk free returns. No one is even arguing that Indian Stock market is devoid of risks..Just that at this time, its safer bet than Pakistan Stock Market...

 

[prithwidw]

It proves that a high-profile, highly valued, public company listed on India's major stock exchange was able to get away with a billion dollar cash fraud that no one noticed for a long time.

If it hadn't been Ramalingan's own conscience that forced him to come out, the Indian authorities and the unsuspecting shareholders would not know it for many more years.

It also proves that there is in investing in India, as in other markets. There nothing particularly safe about Mumbai.

Enron, does it ring a bell?
Arthur Andersen, does it ring another bell?
Lehman Broothers, does it ring a third bell now? Loud and clear?

So, US is not safe for business.

P.S.: US catches cold, and the world sneezes.

 

[RiazHaq]

Enron, does it ring a bell?
Arthur Andersen, does it ring another bell?
Lehman Broothers, does it ring a third bell now? Loud and clear?

So, US is not safe for business.

P.S.: US catches cold, and the world sneezes.

It's because the Americans, unlike Indian, enforce their laws and regulations, and expose the bad guys.

The law enforcement in India is among the weakest in the world.

When the Indians start enforcing their laws, they will find a lot more Satyams.

 

[indian_musing]

Enron, does it ring a bell?
Arthur Andersen, does it ring another bell?
Lehman Broothers, does it ring a third bell now? Loud and clear?

So, US is not safe for business.

P.S.: US catches cold, and the world sneezes.

US sneezes, pakistan not catches cold but H1N1 flu

 

[prithwidw]

US sneezes, pakistan not catches cold but H1N1 flu