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Industry leaders reassure investors not to panic
New Delhi, May 18: Concerned at the pain and anguish of the brokers community at the unprecedented crash yesterday in the stock markets, captains of industry cajoled investors not to panic as the fundamentals of the economy were strong and the new government was likely to announce pragmatic policies to boost the economy.
New Delhi, May 18: Concerned at the pain and anguish of the brokers community at the unprecedented crash yesterday in the stock markets, captains of industry cajoled investors not to panic as the fundamentals of the economy were strong and the new government was likely to announce pragmatic policies to boost the economy.
``The markets should wait for the new government to state its policies before panicking,`` PHDCCI president Ravi Wig said in a statement here.
Former FICCI president S K Birla said the selling pressure of the brokers stemmed from ``nervousness``.
The crash wiped out Rs 2,00,000 crore in capitalisation and the mayhem plunged the markets by 786 points before trading was frozen twice for three hours, the first time in the history of the Bombay Stock Exchange. Only after assurances were given by Congress leader Manmohan Singh and outgoing Finance Minister Jaswant Singh, the market began its upward journey.
President of the Mumbai-based All India Association of Industries (AIAI) Vijay Kalantri said the Common Minimum Programme (CMP), being worked out by a committee headed by Dr Manmohan Singh, would be acceptable to all.
``For the market to panic because of unguarded statements by some leaders was uncalled for. The new Congress-led government would also be pro-reform and likely to take steps to boost foreign investment,`` Kalantri said.
``Congress has been able to muster majority support and there should not be any concern about its stability. The economy is fundamentally very strong and the stock market is likely to bounce back once there is clear indication that the pace of reforms will continue,`` Wig said.
The industrialists said the future course of reforms is triggering fears and creating scepticism about the progress of reforms.
They urged the government to end the prevailing uncertainty by announcing a pragmatic CMP at the earliest and ensuring that its policies have investor-friendly provisions.
Bureau Report
``The markets should wait for the new government to state its policies before panicking,`` PHDCCI president Ravi Wig said in a statement here.
Former FICCI president S K Birla said the selling pressure of the brokers stemmed from ``nervousness``.
The crash wiped out Rs 2,00,000 crore in capitalisation and the mayhem plunged the markets by 786 points before trading was frozen twice for three hours, the first time in the history of the Bombay Stock Exchange. Only after assurances were given by Congress leader Manmohan Singh and outgoing Finance Minister Jaswant Singh, the market began its upward journey.
President of the Mumbai-based All India Association of Industries (AIAI) Vijay Kalantri said the Common Minimum Programme (CMP), being worked out by a committee headed by Dr Manmohan Singh, would be acceptable to all.
``For the market to panic because of unguarded statements by some leaders was uncalled for. The new Congress-led government would also be pro-reform and likely to take steps to boost foreign investment,`` Kalantri said.
``Congress has been able to muster majority support and there should not be any concern about its stability. The economy is fundamentally very strong and the stock market is likely to bounce back once there is clear indication that the pace of reforms will continue,`` Wig said.
The industrialists said the future course of reforms is triggering fears and creating scepticism about the progress of reforms.
They urged the government to end the prevailing uncertainty by announcing a pragmatic CMP at the earliest and ensuring that its policies have investor-friendly provisions.
Bureau Report