There are early signs that the troubles in the US housing and credit markets are sending ripples into our local markets as well.
The Puravankara Projects Ltd IPO is struggling, despite the fact that the real estate company has reduced its offer price band. One troubled IPO surely does not make for an investment winter. But some analysts are saying that investors are going to be more careful when investing in real estate companies from now on—or at least till they know for sure how much destructive power is packed in the US subprime bomb.
Meanwhile, bankers are reportedly advising Indian companies to go slow on the around $6-7 billion worth of global bonds that they were planning to sell in the coming weeks. A few of these companies may eventually have to abandon global bond issues and raise money domestically. That could put pressure on interest rates.
It is unrealistic to assume that India will be completely safe from global tremors.