Analysts play down impact

India is different and Tuesday's short-lived attempt by Thailand to control currency owned by global investors would not have made any impact on domestic markets, say analysts.

A main reason for Tuesday's slump of 2.54 per cent was owing to fears that other markets in the region, including India, may impose similar restrictions, but analysts said Indian markets were immune to such shocks as the Indian currency was not fully-convertible.

"We do not think there is any danger for the Indian markets, as far as Thailand's attempt to curb fund redemption in its country are concerned," Naresh Kothari, head institutional equities, Edelweiss Securities said.

Kothari opined that Indian markets are much stronger as well as domestic economy more stable than small sized emerging markets, which are much volatile.

Earlier, reacting to the Thailand's decision Mark Mobius of Templeton Asset Management Ltd expressed concern when he said, "It's not good news. It means we have got a real problem in terms of redemption of funds."

Mobius also raised hope that other emerging economies do not take similar decision. Nandan Chakraborty of Enam Securities felt Tuesday's market fall was more driven by sentimental issues.

"In terms of attracting the FDI, India at no stage competes with small markets like Thailand. We are competing against Korea, Russia..Thailand hardly matters to Indian markets," he said.