Markets reacting to global developments, don’t panic: Chidambaram
Zee Media Bureau/Rd. Alexander
New Delhi: Finance Minister P Chidambaram Friday attributed the fall in the Indian stock market and the rupee to global developments stating that the market should not be ‘so sensitive’ towards data from the US. He, however, said there was nothing to panic.
The BSE Sensex today crashed by 769 points, the lowest in 4 years and the rupee plunged below the 62-level for the first time before closing at a record low of 61.65 against the dollar.
"I have no doubt in mind, when calm is restored in the market, people will begin to understand India market indicators must basically reflect Indian market conditions. They should not be so sensitive to data coming out of the US," the Finance Minister said.
Reacting to the situation, Chidambaram said he was surprised as to how and why the US job data had affected the markets when such international events do not impact the fundamentals of the Indian economy.
"I think this is time for calm; this is time for reflection and let's see what happens next week", he said of the stock market.
While expecting the market to calm down in the coming week, Chidambaram warned against spreading panic and assured that measures have been taken.
"We have taken a number of measures," he said.
“Let's wait to see what the first quarter growth rates are”, he added.