Bookkeeping: Stopped Out of Half of HDFC Bank (HDB)

Lost in the mess that is the Chinese stock market the past few weeks, is the fact that India has been struggling. The Sensex has lost some 1500 points the past 2.5 weeks, and now sits firmly below the 50 day moving average. I would assume much of this has to do with the same reasons the Chinese market is struggling - the need to reign in inflation (much if it caused by the ZIRP carry trade in the U.S.), and potential for continued monetary tightening as there is no end in sight in easy money in the West.

I had a stop loss for half the position in HDFC Bank (HDB) at $176; unfortunately the stock gapped down this morning and this executed below $172, so we're back down to a sub 1% exposure in the Indian bank as the chart is beginning to look real iffy. I have a major issue with the valuation - hard to see much upside but with so few individual Indian stocks available to U.S. investors it's pick your poison - there is not much Indian merchandise that could be considered cheap. If this name breaks below those lows of a month ago it might need to be sent to the curb - this is actually the only original position left from when I started the Investopedia portfolio back in Jan 2009!

(EDIT 11:55 AM - a reader point out there is a housing scandal brewing in India - causing weakness across the entire financial space.... more 'financial innovation' spreading across the globe)