The stock exchange of India has reopened after it was closed on Thursday because off the attacks in Mumbai, the business capital of India. The benchmark Sensex has rising with 0.7% wich is not bad for what's happend in Mumbai.
The attacks have a little impact on the other Asian markets, most of them have rising, but have brought many companies in problems on short-time. Some companies have to cancell al their meetings and conferences which means that they couldn't be working like they would and maybe have had losses. But people say that the businness in Indai wille be normal again, they haven't got a choice, people have to have food, companies have to produce,...
Like many other countries, India has sufferd from the global credit crunch, plenty off foreign investors have already pulled their money from the Indiane markets. But their are also companies who said that, due to the attacks, they will be no changes in their long-term investments.
Indian economists said that India will always be popular for foreign investors because they can give them what others countries can offer. The predictions for the future are good. The growth rate for example will be 9% in 2009.
I think that India will be in problems if the attacks will last on will go further through the country. When I for example will be an investor and i have had money in India I would immediatly pull off the markets. Because off the attacks the companies can produce what they produce normal conditions. And also becausse off the global credit crunch, I think that India has no good papers for the future despite off the good growth rate of 2009.
Also I think that new foreign investors will put their money on markets that are more stable than the Indian market.
source: http://news.bbc.co.uk/2/hi/business/7753843.stm
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I partially agree with it. The Indian government will not allow that their carefully build up image will be destroyed by terrorists. But it's of course very bad publicity that can scare away foreign investors that are willing to spend their money in India. I think there will be a slight dip now but on long term this event will not affect the economy.
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