Released on: March 14, 2008, 2:55 am

Press Release Author: Dawnay Day AV Analytics

Industry: Financial

Press Release Summary: London, Mar 14: The ongoing turmoil in the global financial
markets would impact the country's bourses but not the strong growth dynamics of the
Indian economy which remains largely decoupled even years after its integration with
the global market, according to a research report by leading Indian financial
analytics firm Dawnay Day AV Analytics.

While the Indian stock markets  that have traditionally followed the cues
from global bourses and benchmark indices (eg S&P 500) in hard times  would
be substantially influenced by the mayhem in the financial world, the real economy
would remain largely shielded due to its protective armours  a healthy
banking sector, strong consumption and investment demand, bulging forex reserves and
relatively insignificant role of trade in GDP growth.

Press Release Body: London, Mar 14: The ongoing turmoil in the global financial
markets would impact the country's bourses but not the strong growth dynamics of the
Indian economy which remains largely decoupled even years after its integration with
the global market, according to a research report by leading Indian financial
analytics firm Dawnay Day AV Analytics.

"India's GDP has experienced a high growth rate of over 9% in the last three
years..The growth story is unlikely to be cut short by a slowdown in the global
economy, mainly because of the strong cushion of extra cash available in the
economy," says the report titled 'Interlinked Stock Market Inside a Decoupled
Economy' and presented by executive director Shailesh Dhuri here today.

While the Indian stock markets  that have traditionally followed the cues
from global bourses and benchmark indices (eg S&P 500) in hard times  would
be substantially influenced by the mayhem in the financial world, the real economy
would remain largely shielded due to its protective armours  a healthy
banking sector, strong consumption and investment demand, bulging forex reserves
and relatively insignificant role of trade in GDP growth.

Even a flight of hot money is unlikely to dash the great Indian hopes given the
large accumulation of spare cash (8.3 % of GDP) and forex reserves ($290.9 bn as of
February 8, 2008) in the economy, Mr. Dhuri said, addressing a conference on the
impact of a global downturn on the subcontinent, more specifically on China, India
and Pakistan.

Presenting India's case, he said the domestic bourses, which were driven by strong
P/E expansion in the later part of the five-year rally till January 2008, has
entered a phase of corrections post January, thus following a long-term trend of
increased correlation during times of high volatility.

Drawing comparisons with the US, the report shows that India's external debt
position and twin deficits (a measure of external and internal claims on
government) are far healthier than that of the largest economy in the world. As of
FY2007, India's external debt as a percentage of GDP was 16.47 per cent against
90.26 per cent of the US. These further buttress the claims of a minimal impact of
any external shock on India's long term growth prospects, but points a finger to
the unnecessarily conservative ratings of the country from global credit rating
agencies.

"Going forward, India's rating is only expected to improve, implying a lower risk
premium over the long term," the report concludes.

About Dawnay Day AV Analytics

Dawnay Day AV Analytics is a key emerging company in the fast growing knowledge
process outsourcing (KPO) sector in India with a clear focus on financial research
and analytics. The company which has extensive capabilities ranging from simple
data-compilation to comprehensive financial research, analysis and modeling, offers
its services either in the form of exclusive or non-exclusive teams of analysts. The
company has a proven track record in the financial research domain and has enabled
its clients to enhance business productivity at marginal costs and unleash potential
of driving revenue growth.

The entire details of the above mentioned update report is available for download on
the company website at http://www.ddavanalytics.com.

Please contact Rohan Parekh on +91(0)22 40059123/40 for further details regarding
the company\'s services.



Web Site: http://www.ddavanalytics.com

Contact Details: Rohan Parekh
A/205, Dynasty Business Park,
Andheri-Kurla Road,
Andheri (East),
Mumbai - 400069.
Maharashtra, India
Tel - +91 22 40059123
rohan.parekh@ddavanalytics.com