Lehman effect on India

Everyone is curious to learn about the effects of the Wall Street turmoil on India. It is now known that bankrupt financial giant Lehman Brothers owes $5.5 million to Indian IT companies. Wipro seems to be the worst hit with nearly $2.3 million pending from Lehman followed by TCS ($1.39m), eClerx($0.56m), Polaris($0.51m), L&T Infotech($0.3m), Satyam ($0.25m), HCL($0.16m) and CTS($0.033m). Wipro and TCS have remained mute on this issue so far. eClerx confessed on Monday that nearly 13% of its revenue for FY09 are from Lehman. Barclays which will manage Lehman’s North American operations is the hope for Indian companies to get their money back. But the process might take more time than desired. Nomura will buy the Asian operations of Lehman Brothers. America and the world is learning lessons from the present market catastrophe. Everyone is switching to the safe mode. Goldman and Morgan Stanley have changed colors and are going to become commercial banks. Everyone has a silent prayer that the markets will settle down.


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