Wednesday, September 20, 2006

A Question Mark Over Investments - Fallout Of Political Developments

The military coup in Thailand has put the world on tenterhooks. When it happened last time in 1997, the Asian currency market had sunk into a deep crisis. For such coups, whenever or wherever they take place, political analysts find it wise not to venture any comments on their outcome as chances of being proved wrong are very high.
Be that as it may, Indian companies have lot of business interests in Thailand. Investments have been made in a wide range of products including rayon fibre, drugs & pharmaceuticals and chemicals. The companies having large stakes in Thailand and likely to get affected are Ranbaxy, Baroda Rayon, Aditya Birla group and Ballarpur Industries.
Nearer home, the change of government in Jharkhand has already set the cat among the pigeons by announcing a review and revaluation of Memorandum of Understandings (MOUs) signed by the predecessor. In my post 'Politics And Economics Are Strange Bedfellows', this very forecast had been made which now has turned out to be true. Many investors for steel, power and mining projects are crossing their fingers. Of course, those who know how to run with the hare and hunt with the hound are not unduly worried.
It would always be better for investors to keep a distance from politics. Easier said than done - is it not?

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