By now, I’m sure you’ve seen that the Indian markets are getting knee-capped and it ain’t fun. It’s part of the global sell off that is happening as we speak.
When the Sensex opened on Tuesday at 9:55am it was halted within 35 seconds by then the markets fell 10% – which is around 1700 points. When it reopened it fell another 600 points.
But that’s not the point of this post, it’s more about the talking heads on CNBC and the level of hubris being shown. Let’s rewind back to Monday:
Markets: Sensex down 600
CNBC: What’s happening in the US doesn’t affect India so people should continue to buy on this dip (what happened to the world is flat concept?)
Markets: Sensex closes down 1395 points
CNBC: Several major Indian brokerage firms (including Enam, Edelweiss and Motilal Oswal) were telling investors to buy (why? oh I’m guessing it has something to do with commissions)
Markets: Before the Sensex opens, all of Asia is down
CNBC: Now is the time to buy as the fundamentals have not changed, just cheaper (whatever)
Tuesday after the open:
Markets: Sensex is halted after falling 10%
CNBC: Indian Finance Minister urges people to buy, as the India story is fine (please can someone re-tell me that India story)
Tuesday during market hours:
Markets: Market is more volatile then Mike Tyson at a beauty pagent
CNBC: People should buy, since the markets are off their lows of the day
Tuesday after the market closes:
Markets: Sensex is down 875
CNBC: 36% of the people polled feel the bottom is here (and sample size of the poll? 11 – yes eleven frikken’ people)
Bottom line, I would NOT buy, just hold tight and wait for more carnage to follow. If I’m wrong, big deal you might miss a 4-6% run.
p.s. The post of the title is a play on the Indian Tourism Board marketing campaign – “Incredible India“