Tuesday, January 22, 2008

Chidamabaram dispels investors' fears

Finance Minister P. Chidamabaram Tuesday allayed fears of investors after the Sensex continued its downward spiral and trading was stopped for one hour as the markets hit the 10 percent circuit limit on opening.
"The crash does not affect long term sentiment and enough liquidity will be provided. We should not be bothered by the West's economy," Chidramabaram told reporters after trading was suspended for an hour at the Bombay Stock Exchange.
Markets, however, recovered after reopening at 10.55 a.m. after the benchmark Sensex fell to a low of 15,576.30 within minutes of opening, crossing the lower circuit limit of 10 percent.
On Monday, the 30-share barometer tumbled by 1,408 points on concerns regarding the US economy going into recession.
The finance ministry asserted that Monday's sharp fall in share prices did not reflect any change in the fundamentals of the Indian economy.
In a statement released Monday, the government advised investors not to be led by market rumours or any unwarranted apprehensions.
"The fundamentals in the domestic economy are quite strong. Today's market fall reflects the continuing uncertainties in the global economy and not any change in the fundamentals of the Indian economy," the statement added after the markets recorded their biggest fall.
Indo-Asian News Service

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