Stocks to be watched on Monday after Dubai debt crisis

Markets would closely monitor the movement of share prices of seven companies, which have exposure in the Gulf region, in the backdrop of Dubai debt crisis having ripple effects on Indian bourses.

Analysts and brokerages feel that investors should hold on to their portfolio at this level as the companies' exposure is minimal and would not adversely impact their earnings.

The stocks, which have exposure in the Gulf region include Bank of Baroda, Nagarjuna Construction, Larsen & Toubro, Punj Lloyd, Voltas, Simplex Infrastructure and SpiceJet.

"We believe Nagarjuna's Dubai exposure has long been discounted in valuations. The event-based orrection also presents a good opportunity to enter into L&T and Voltas, who will be relatively unscathed by the developments in Dubai," domestic brokerage Religare Hichens Harrison said in a report.

Domestic brokerage firm SMC Global Vice President Rajesh Jain said: "Investors can take some profits off the table as and when the market sees a counter rally. Till then investor should trade cautiously till the panic fades."

The stocks of these companies witnessed a volatile trade on Friday last and settled in the red in the range of 3-6 per cent.

However, analysts are optimistic that the debt repayment crisis will not impact the earnings of the companies in the long term.

“The Dubai crisis is only a tip in the iceberg and the stock markets witnessed more of panic selling. The exposure of Indian companies is limited to high quality clients," Mr. Jain added.

Echoing views, Bonanza Portfolio Assistant Vice President Avinash Gupta said: "Investors should wait for 2-3 more days for the dust to settle down and let the clear picture emerge.

As of now there is no such stock from which investors should make a clear exit.

"On Friday, BoB ended down 4.64 per cent, while Nagarjuna Construction declined 4.46 per cent, L&T (2.71 per cent), Punj Lloyd (1.89 per cent).

Besides, SpiceJet, in which Istithmar, the alternative investment house owned by Dubai World, holds 13.4 per cent fell 4.44 per cent and Simplex Infrastructure was down 0.52 per cent).