Centre shock for markets

THE liquidity crisis faced by the banks in early October could be one of the reasons for the delay in the monsoon session of Parliament. The government had more than Rs 25,000 crore parked with RBI at a time when interest rates went through the roof in the call money market. According to an RBI official, the money was raised for farm loan waiver subsidy, but could not be released without the government's nod. Though the FM announced the release of these funds last week ahead of Parliament session, funds were lying idle in the central bank's coffers when the liquidity crisis was more acute in the earlier weeks.
JOB FEARS
FOREIGN bankers are a worried lot. With market activity across different segments coming to more or less standstill, there is not much work. Most bankers are showing deals around, but with the credit crunch, its unlike to cut ice. Most of them have lost all hope of getting any substantial bonus this year. If the situation persists, it would be only months before job cuts become a reality in India too.
SPACE ODYSSEY
DEVELOPERS may be holding back prices, but there has already been a crash in high-end rentals. Two financial services firms, in advance talks with Indiabulls for office spaces in its new project in central Mumbai's mill lands, are having second thoughts. Reliance Capital has booked some properties, but is not going to move all its operations from its present office in Wadala. Birla Sun Life, which has also booked space, is now looking at cheaper options in the Bandra-Kurla Complex.
COMPLEX DEALS
THERE has been a lot of speculation over the names of bidders for AIG's business in Asia. A couple of Indian business houses too are rumoured to be in the fray. Sources in one of the business houses that has looked at AIG's subsidiaries say that the entire list of group companies runs into several pages and the ownership itself is a maze. The Byzantine group structure was so complex that even the corporate house, which itself is not new to holding company structure, found it difficult to figure out how things would unwind.
LOSE-LOSE
IN ORDINARY circumstances, a depreciating rupee brings cheer to a small segment of the population. This includes, exporters, software companies and employees of multinationals with Esops. But that is not the case this time. Exporters including software companies are not seeing any major growth in orders. Employees of MNCs with Esop shares held in overseas trusts are finding that while the exchange rate has moved in their favour, the value of the stocks has almost halved.
WEST NOT THE BEST
THERE was a time when NBFCs floated by multinationals had only to announce that they were issuing debt and money would start pouring in. Investors were not bothered about looking into their balance sheets or guarantees. The tide has changed. An Indian arm of a leading multinational NBFCs found it so difficult to raise funds that it had to finally come out with a guarantee from its parent before it could raise funds.