Indian stock markets to tread with caution: Dean University of Virginia

Indian stock markets to tread with caution: Dean University of Virginia

New Delhi: Dean, Darden Graduate School of Business Administration, University of Virginia, Robert F. Bruner has warned that the current U.S Sub prime crisis would see many CEO heads roll as financial markets of Asian region begin to get affected by the global crisis.

Addressing the Assocham-IASS-PHDCCI Joint Conference on “Crashes and Panics: What drives a financial crisis" here today, he said that the U.S sub prime crisis would persist for another 12-14 months and this is bound to have adverse implications for many economies because of their dependence on U.S economy.

His advise to investors both retail and otherwise is to invest with caution in Indian stock markets as it might shake up with U.S sub prime crisis intensifying further as these would have far reaching implications on Indian economy because of its close integration with U.S economy.

His talk touched upon how mergers & acquisitions were likely to be triggered and that the best ways to manage the crisis was to have sufficient reserves and to regulate monetary supply as also prompt the central or federal bank to regulate collective behaviour of policy makers.

According to him, Indian policy makers must gear up by putting in place strong regulation based on realistic valuations. Top management and leadership had to take responsibility while advising, recommending and suggesting action.