The market may keenly look up for the cues relating Dubai debt crises for

RELATED ARTICLES Sensex ends flat; outlook still weak Sensex regains 16k level; ends 274 pts higher NSE loses trillion-dollar market cap tag; BSE a whisker away NSE loses trillion-dollar market cap tag; BSE a whisker away Rupee plunge: Losses double for FIIs in Indian stocks

the direction this week. Experts say investors should wait for one or two trading sessions to get clear picture before taking any positions.

Krishnan Ramachandran, CEO of Barjeel Geojit said, “The proposal by the Dubai World, a state-controlled enterprise, to restructure its debt portfolio has taken the markets by surprise and is being viewed as a prospective quasi-sovereign default. The timing of the announcement added to the uncertainty, it was done just before the long Eid holidays.”

Both S&P and Moody's have downgraded a number of Dubai entities and some of them to near junk status. Ramachandran expects the debt restricting will go through, at least partially with the GCC-based banks, but one has to wait and watch as to how the international banks will respond to this offer.

Dinesh Thakkar, CMD at Angel broking believe the Dubai crisis may be for a short time and investors should use the opportunity provided from the knee-jerk reaction of the markets to enhance exposure to equities.

“The debt servicing problems surfacing in Dubai has sent jitters to the markets across Asia, Europe and back home which were deep in red. I believe that the impact on bourses especially in India would be short lived as the exposure of the India and Indian corporate to Dubai is not significant. Further, the same is unlikely to deter the liquidity flows towards the Indian bourses, which provides the global investors an exposure to the high growth and profitability destination,” he said.

Ramachandran believe local markets to react negatively once they open on Monday and the global markets have already reflected their concerns with the corrections seen, especially in the CDS and bond prices of Dubai based entities, Nakheel in particular.

Realty firm Emaar MGF, which were going to come up with its initial public offer in India, may see some delay, say experts.

The BSE Sensex shed 389.84 points, or 2.29 per cent, last week to close at 16,632.01. The Nifty index on NSE lost 110.70 points, or 2.19 per cent, last week to end up at 4,941.75.

The foreign institutional investors (FIIs) on Friday remained the net buyer, picking up equities worth Rs 306.10 crore from the market, according to the figures available at the market regulator Sebi website.