An over-leveraged Dubai may be writing a new chapter in the book of the global financial crisis of 2008-09. On Wednesday, the Dubai government said it will ask creditors of two of its flagship firms, Dubai World and real estate developer Nakheel, for a standstill on debt worth billions of dollars as a first step towards restructuring
What wil be its effect in Indian Markets ? Which all companies/industries will face the maximum brunt ?
Will the Inidan market be able to sustain the shock ?
market needed a reason to go down, and this incident came as a blessing to all the bears! :)
ReplyDeleteAnother sovereign risk encountered, surely would have ruined the bets of many going bullish. Looking forward to this months results of various MF's and HNI's. One just can't BEAT the market (so y do we study it).
ReplyDeleteIs there a reason for the Indian economy or the Indian stock market to react negatively to the turn of events in Dubai? There are a few Indian companies which have exposure to Dubai projects. These companies may take a beating on their P&L statements and the same may reflect on their stock prices. On the whole, as of now the Indian economy is doing well and there is no need to panic as yet.
ReplyDeleteAtleast the news from the major banks in India has assured of no major hassles in dealing with the dubai crisis as Dubai has the very less share (only 7-8%) on their P&L.
ReplyDeleteDiversification paying off :)
The party was not even started and Dubai objected !!!This certainly is going to put a slight brake to the poised India Inc as it would affect the remittances drastically. Lets hope Dubai recovers soon and so does India..
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