December 12, 2006 – Back on October 23rd, I blogged about not liking the excessive risk inherent in many Chinese banks. Instead, I looked to India for much better managed banks with high potential growth in seeking investment opportunities in the financial sector. Specifically I mentioned ICICI bank and HDFC bank. I also wrote back then that “I think that there will be ample opportunity in the future to buy both these Indian banks at cheaper prices than today. Furthermore, both ICICI and HDFC have had great runs over the past three months, and as we all know, no stock price goes straight up without experiencing short term corrections.”
Well take a look at the two charts for ICICI and HDFC banks today. I know the charts are blurry because I shrunk them to fit on the page, so the chart for HDFC bank is on the left and the one for ICICI is on the right. The corrections are starting as you can see from sharp declines in both charts. This may lead to a good buying opportunity. Just keep a close eye on this current dip to see how far it progresses.
