Dollar carry trade, Dubai World or capital controls?

Can all this have a material impact on Indian corporates? For one, some Indian companies and Banks do have a marginal exposure to Dubai. It will give them a reason to make provisions for the December and March quarter.

Earnings of select companies in industries listed above could settle for some write offs. The ripple effect could be there, the fallout, minimal.

Effectively, neither of the above yet appears to be an immediate serious threat to any specific emerging market or to the Indian equity markets. What they will surely create is greater unpredictability, instability and volatility. Equity markets going forward may not be for the weak hearted, but were they ever supposed to be?

(You can e-mail Nipun Mehta at: nipun.mehta@sgprivasia.com)