Find the latest episode of "The Uncertain Hour" here. Listen

Black Monday fallout

Miranda Kennedy May 23, 2006

MARK AUSTIN THOMAS: Yesterday stock markets as far flung as Turkey, Russia, Brazil and India suffered huge losses. India’s main benchmark stock index, the Sensex, tumbled 10 percent to its lowest point in three months, and trading was halted for an hour. From New Delhi, Miranda Kennedy tells us why.


MIRANDA KENNEDY: Foreign investors helped India’s stock market become one of the best performing emerging markets. This year, they invested over $4 billion. But last week, in just four days, they sold over $500 million worth of stock.

SUBIR GOKARN: There were lots of people who believed the market was overvalued.

Economist Subir Gokarn says that, plus concerns of a global economic slowdown, gave foreign investors the fear. But he says it’ll pass.

SUBIR GOKARN: There isn’t anybody on the horizon who is predicting a sort of major meltdown in the economy, and that means sooner or later money will have to come into India in search of higher returns.

Gokarn says investors won’t be able to resist the world’s second-fastest-growing economy for long.

In New Delhi, I’m Miranda Kennedy for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.