Indian stock market and real estate

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Submitted by dd123 on June 29, 2008 - 11:10am

Indian stock market lost 600 points last friday.
It is now trading at 13750s, the peak was 21000s.
Quite a drop from peak.

Also, Indian real estate is seeing a slowdown now.
I am from India and from a small city. In my city, the real estate has been appreciating at phenomenal rate ( 40% year ).
I can see the same story again in my town.
All of my friends are investing in real estate not because they need a house to live but they need to cash it out after a year or few months.
It is all crazy there right now.

Lets see how things turn up but right now there is madness in real estate ....

‹ Today's Speculative Bets: Puts on NASDAQ and S&P500 Inflationary Pressures ›
i'm originally from India as
Submitted by kev374 on June 29, 2008 - 11:23am.

i'm originally from India as well, from Bangalore. My parents still live there. My dad bought his house in 1967 for probably the equivalent of US $10,000. It's now worth about US $480,000. It's absolutely unbelievable!

Per Mish, India and China are
Submitted by barnaby33 on June 29, 2008 - 11:49am.

Per Mish, India and China are in an inflationary cycle, we aren't (anymore). I'd expect RE prices to increase quite quickly in those places as long as the high inflation rates persist.

Just another hole in the, "global savings glut," argument. India and China have printed like made to buy our currency so they could sell us stuff made there. Gee I wonder if that could cause inflation?
Josh