Don't see impact of Dubai, but correction may happen

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Udayan Mukherjee, Managing Editor, CNBC-TV18, says the markets seem to have digested the events in Dubai. He sees a relative air of calm on Monday morning. "Asia is rebounding. The US markets could not rebound on Friday because it was a short session out there. But the rest of the global markets seem to be far calmer than they were on Friday."

He feels this could pave the way for little bit of pullback here in India. "It is not the panic stricken kind of morning that one woke up to on Friday." Going forward, he says the markets, which have ran up a lot, may still be poised for a correction.

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also see the accompanying video.

On Dubai debt crisis

It was a nervous weekend watching Dubai and thankfully things haven't worsened over the weekend. So this morning there is a relative air of calm - none of those huge sell-offs like you saw on Friday across Asian - in fact Asia is rebounding. Maybe the US markets could not rebound because they did not have time to rebound. It was a short session out there but the rest of the global markets seems to be far calmer than they were on Friday and that should pave the way for little bit of a pullback back here in India.

It is not the panic stricken kind of morning that one woke up to on Friday. I think markets have generally come to terms over Dubai at least for the moment over the weekend.

Q: It is also interesting that the relief has come first from the most broken down part of the global market setup?

A: Yes, Europe stabilized and that was the first sign because on Friday if Europe had sold off because the fear is that European banks would be hit but they took a knock and they bounced back. That was the first sign that things are coming back to normalcy - that the knee-jerk reaction was perhaps done. Yes, the US could not pullback in that truncated session but Asia is okay even markets like Korea where there are some apprehensions seem to be stabilizing now.

Thankfully there has been no escalation over the weekend to the troubles which were reported on Thursday, and that is good news. Abu Dhabi is making the right noises now. So if the Abu Dhabi Sheikh's come out and ensure that we are not shaken anymore then we will be fine.

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