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| No need to press panic button: analysts |
| Press Trust of India / Mumbai Nov 27, 2009, 21:30 IST |
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The Dubai debt repayment woes have dragged down markets across the globe, but analysts are still optimistic and believe that investors here should not press the panic button instead hold on to their portfolios as the downslide is only momentary.
"Market was overheated and looking for a trigger to undergo correction. What we saw in the last two days was only a knee jerk reaction, but things are not that bad for our market as our exposure is limited," Taurus Mutual Fund Managing Director RK Gupta said.
Echoing similar views, Angel Broking Chairman and Managing Director Dinesh Thakkar said: "The impact on the bourses, especially here, would be short-lived as the exposure of India and Indian corporate to Dubai is not significant."
On Wednesday, the Dubai government-owned investment company Dubai World asked for a six month delay on repaying its debts. Dubai World has total debt of $59 billion. This raised concern about the financial health of this once financially-strong Gulf city-state country.
The news left investors worldwide jittery and sent realty and financial sector stocks across Europe and Asia including India plunging on the bourses.
"The trouble in Dubai is not likely to have a direct significant impact on us. The market continues to be in uptrend and investors should be cautious at this juncture as situation is fluid," Bonanza Portfolio Assistant Vice-President Avinash Gupta said.
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