India Investment/ Dow Jones India Titans 30

[Oliver_Balcomb]

Hi
With India being one of the hottest places to invest at the moment, i have been trying to do some research.

There will be a company, for example Reliance Industries LTD, it will be listed on both the Bombay Stock Exchange and the Indian Stock. In a days trading, the shares could go up on one stock market and not the other - i dont understand!

Also Rupert Murdoch has just brought out Dow Jones India Titans 30, which is the 30 biggest companies India index. How does this index work when its taking shares in a company from both stock exchanges, how does the indices win and how can this index be used?

 

[anley]

Well, many who have invested over the last 6 months who've lost around 50% of their capital wouldn't quite agree with you when you say 'India being one of the hottest places to invest at the momemt'

PS. Rupert Murdoch is a media baron, he has nothing to so with the listing or managing ETFS. His job is purelyu propoganda

 

[Oliver_Balcomb]

The economy of India, measured in USD exchange-rate terms, is the twelfth largest in the world, with a GDP of around $1 trillion (2008). It recorded a GDP growth rate of 9.1% for the fiscal year 2007–2008 which makes it the second fastest big emerging economy, after China, in the world.

How can you manage to loose around 50% of capital there? Obivously not investing wise enough!!!! Where would you say are the hottest places to invest at the moment then?

I know Ruper Murdoch is a media baron, he has nothing to do with finance, but seeing as his news corporation deals with the dow jones indices and are very good for information im not complaining.

PS cant you answer the original question in the first place

 

[anley]

I haven't lost 50% but many have, most of them Indians who thought playing a 'hot' market was an easy way to get rich.

Just because an economy is growing at x% a year and has y% potential doesn't mean it's easy to make money, or indeed a sure thing.

Reliance I believe is already listed on the NYSE, ticker RELIANCE but then the company has so many divisions I don't know which one has the quote or it's the overall parent company.

Shares can easily be listed on dual exchanges but with pretty much 24 hour trading these days they will normally be perfectly priced on each one. Maybe a touch of arbitrage is available one would most probably have to trade in excess of $1million blocks of shares to make a few thousand profit.

 

[anley]

Where would you say are the hottest places to invest at the moment then?

As a very good rule of thumb NEVER invest in a 'hot' market because by definition you've already missed probably 70% of the move.

The markets you want to invest in (for the long term) are the COLD markets, the ones that have been going down or nowhere for some time, the ones where if you tell people you're an active investor they think you're stupid and it's just a matter of time before you lose your money.

As for where that market is at the moment I don't know but again, it's often a good idea to keep away from hot markets or if you're lucky enough or good enough to have invested in them some time ago, look to sell when they get 'hot' and everyone starts talking about them.