Is it time to run screaming from the Indian stock market?

Here, from an e-mail I just got from the folks at Russell Investments, are the world’s 10 top-performing stocks of 2007:

Inner Mongolia Yitai Coal Co. Ltd., China, 1017%
Jai Corp. Ltd., India, 877%
Reliance Natural Resources Ltd., India, 823%
Ispat Industries Ltd., India, 742%
Jindal Steel & Power Ltd., India, 664%
Essar Oil Ltd., India, 570%
Shougang Concord Int’l Enterprises Co. Ltd., Hong Kong, 534%
China National Building Material Co. Ltd., China, 496%
Lanco Infratech Ltd., India, 487%
Adani Enterprises Ltd., India, 467%

My immediate reaction to this is sell India! I mean, I’m willing to believe the Indian economic miracle is real and will continue, but those kind of gains can’t. Of the top 100 stocks worldwide in 2007, 41 were from India. Like they say, past performance is no guarantee of future results.

The top U.S. performer was Onyx Pharmaceuticals, in 12th place, up 426%. In all, six U.S. companies made the top 100. Which is actually more than I would have thought.

Apple CEO Cook Gives Up $75M in Stock Dividends

NEW YORK — Apple CEO Tim Cook is giving up $75 million in dividends on restricted stock that the company is awarding to all of its employees.

In a filing with the Securities and Exchange Commission on Thursday, Apple Inc. said that Cook requested that his restricted stock units not receive dividends. The dividends that Apple workers are getting amount to $2.65 per quarter for each restricted stock unit held. The shares are not normally eligible to receive dividends, so Apple’s decision is a perk for its employees.

http://hillant.blogspot.com/ Ant Hill

This kind of return in such short time may be possible only in emerging markets only where the scripts remained undervalued as the growth potential of the companies were not considered previously. The Indian market should remain buoyant for some more time as in addition the whole entity is made unique by making it a judicious mixture of domestic and export growth potential.
Jay

The Indian economy will remain buoyant for many years to come. It will see a multi-faceted and well rounded growth across a broad spectrum of industries. Its the fruit of having over a billion people living under a democratic umbrella. That has not happened anywhere at any time in the history of mankind. Keep watching!
surya

Since the Indian economy is growing and democratic govt is bit strong the market is in full swing now. If everything goes on well definetely it will reach more heights in the years to come. I guess the market is fundamentally strong and no bad news so far. Being an Indian I am proud and happy too.

Surya
Chennai
India
http://www.bloomtools.com web design

I think it still has a bit of growth to go, but you are right – it cant go on for too much longer.

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