November has created ripples among Indian investment community especially the second half of the month was night marish on massive profit booking by FII's. Nifty lost nearly 9 pct from the top.
While Wall Street is closed on Thursday on account of Thanks Giving, Asian markets opened marginally in the green on Friday.
Dubai - Debt concerns
Last November Dubai World, the conglomerate with emirate’s government as one of the shareholder, startled global markets by delaying payments on its debt. In September, Dubai World struck a deal with its creditors to restructure about $24.9 billion of liabilities. While Dubai World’s agreement with lenders helped improve sentiment, concerns over debt loads in the emirate have not gone away.
In recent weeks, Dubai Group has reportedly missed loan payments. We do not expect Dubai debt concerns to raise alarms.
Dalal Street - Oversold?
No doubt Nifty and Sensex are oversold, we believe there will be a surprise rally soon. Nifty might lose another 100-150 points from the current levels. We see this sell-off as the final oppurtunity for investors to get on board. Except for IIP data none of the concerns expressed in the recent days including scams, war tensions, FII year end selling has any role to play in the growth of the economy.